India Accelerates Free Trade Talks with US, EU and Others; EFTA Pact to Take Effect from October 1

New Delhi, Sep 29, 2025: India is pushing ahead with a series of free trade agreements (FTAs) as Commerce and Industry Minister Piyush Goyal announced that negotiations are in progress with the United States, European Union, New Zealand, Oman, Peru, and Chile. He also stated that Oman and Peru have expressed interest in starting trade pacts with India.

During the UP International Trade Show in Greater Noida, Goyal announced that India agreed on Terms of Reference (ToR) with the Eurasian Economic Union (EAEU), consisting of Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia, in August 2025 to officially commence negotiations of an FTA.

Progress on India-US Bilateral Trade Agreement

The remark is a sequel to his most recent trade negotiations in New York that witnessed India and America reaffirm that they would aim to reach a Bilateral Trade Agreement (BTA).

Until now, negotiations have been completed in five rounds. The two nations’ leaders already directed officials to complete the first tranche of the agreement by fall 2025 (October–November). The agreement seeks to go beyond bilateral trade from a current USD 191 billion to USD 500 billion by 2030.

The negotiations took an expedited tone when America imposed 25% reciprocal tariffs and a 25% penalty on Indian exports as part of purchases of Russian crude oil, effectively putting a 50% additional import duty on Indian exports to America.

Despite these hurdles, America has been India’s biggest trader as a country for the fourth consecutive year during FY 2024-25, when two-way trade amounted to USD 131.84 billion, of which Indian exports amounted to USD 86.5 billion. America is now providing for 18% of Indian exports of merchandise and 10.73% of all merchandise trade.

EFTA Trade Pact to Begin on October 1

Goyal also confirmed that the Trade and Economic Partnership Agreement (TEPA) reached with the European Free Trade Association (EFTA), which comprises Norway, Switzerland, Iceland, and Liechtenstein, would come into effect from October 1, 2025.

Key features include

• USD 100 billion investment commitment by EFTA in 15 years.
• Market access through zero or below rates of duty on high-value products like Swiss watches, Swiss chocolates, and cut and polished diamonds.

“This agreement will significantly assist Indian traders and is a result of growing international interest in India’s market,” Goyal stated.

Expanding Global Trade Footprint

With an array of pacts in play from US and EU negotiations to EAEU and EFTA deals, India is ramping up efforts to be a central hub in global trade. Goyal urged consumers to give this momentum a push by consuming Made in India goods, boosting manufacturing in India, and exports. The new trade treaties, when finalized, would completely overhaul India’s export market as well as foreign investment inflow in the coming decade.

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