Introduction
As you explore India's economy, the nation's bold push into free trade agreements (FTAs) and bilateral trade agreements (BTAs) unlocks a world of possibilities. With Indian exports 2025 on track to hit a $1 trillion target by 2025-26, these agreements are transforming your business horizon. Imagine scaling your business with lower tariffs and more market access. This is India's international vision and will help fuel growth across sectors.
Leverage the India-UK FTA Boom
A critical Free Trade Agreement (FTA) between India and the UK was concluded in May 2025 to increase trade from US$60 billion to US$120 billion by 2030. Once the FTA is ratified, 99% of Indian Exports, including textiles, leather, and footwear, will have their tariffs eliminated, helping Indian businesses be more competitive with others in the UK market. Several other products, including Scotch whisky and cars, will have their duties reduced slowly over ten years. The FTA also allows easier access to visas for professionals and investors, with an implementation timeframe of 12 -15 months. The FTA will enable exporters and investors to expand operations and pursue new growth opportunities.
Steer Through India-US Trade Agreement 2025
The India-US trade agreement of 2025 is an opportunity and a warning. An interim BTA will try to protect your exports from tariff increases, with the US set to impose a 25% tariff on select Indian goods from August 2025. The firmness of India will protect critical sectors like steel and auto, and will aim to impose retaliatory tariffs at less than 20%. As you develop your global strategy, diversify your markets so that you can cushion the India tariff on retaliatory tariffs from such actions, all while keeping the business nimble and freeing you up to make agile reactions to the ramifications of political instability while continuing to maintain year-on-year growth rates.
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Profit from the India-EFTA TEPA
The India-EFTA Trade and Economic Partnership Agreement comes into force in October 2025. It is a windfall for you, with investments from Switzerland, Norway, Iceland and Liechtenstein pledging $100 billion over 15 years, generating almost one million jobs. You'll benefit from lower duties on luxury imports like Swiss watches, while gaining access to your legal, R&D, and IT services in European markets. Like this, India's free trade agreements channel capital into infrastructure and skills in smaller cities. Imagine your IT start-up in Pune landing European clients; that agreement will make it a reality.
Strengthen Supply Chains with the India-Australia Agreement. Why does it matter?
The evolving India-Australia Free Trade Agreement (FTA) will provide you with valuable access to strategic resources. The FTA will deliver on critical minerals such as lithium and nickel needed for batteries for electric vehicles (and renewables), building on a previous agreement. The FTA negotiations focused mainly on green energy and agriculture, providing opportunities for Australia's farm products to meet your need for growing food inputs and systems driven by your IT talent. With the FTA, you strengthen your supply chains, deflecting reliance on ever-increasing volatile trading environments, and giving your business better legs to move forward on sustainable technology systems.
Assess the Risks and Grab the Opportunities
These FTAs and BTAs promise lower prices, jobs, and a stable rupee from the workforce; however, like any agreements, risks exist and must be monitored. There may be agricultural concessions with farmers that may cause hardship in rural areas, and the tariff impact from the USA on India should remind us to take care of negotiations on delicate sectors. However, the future is perfect - textiles, EVs, and batteries are confident to be leading segments in the emerging trade, with the Indian export growth potentially taking part in expanding markets in 2025.
Conclusion
As you develop your global strategy and continue to monitor trade activity, be aware that the opportunities in sectors such as manufacturing and services can be very lucrative if you play your cards right. At Motilal Oswal, we want to help you tap into this trade boom with educated investments. Consult our experts to align with India's free trade agreements and utilise as many opportunities as possible to achieve sustainable long-term success. If you deliberately cultivate these trade deals, you can use them to grow amidst an increasingly competitive world.