Introduction
In a global economy driven by interconnected supply chains, bilateral trade agreements (BTAs) have emerged as powerful tools for shaping investment decisions. India, now more assertive in its trade diplomacy, has signed and is negotiating several BTAs aimed at expanding its economic footprint and attracting foreign direct investment (FDI).
For international companies exploring or expanding their India market entry, understanding these trade agreements is crucial for identifying cost advantages, compliance ease and cross-border business promotion opportunities.
Why Trade Agreements Matter to Investors
Bilateral trade agreements do more than reduce tariffs. They:
- Provide preferential market access for goods and services
- Establish intellectual property and digital trade frameworks
- Enable cross-border capital flows and investor protection
- Facilitate movement of skilled professionals and students
- Increase confidence and predictability in long-term market strategies
These directly impact the feasibility and profitability of business setup in India or sourcing from India.
India’s Major Trade Agreements and Their Impact
1. India–UAE Comprehensive Economic Partnership Agreement (CEPA)
- Eliminated duties on 90% of goods
- Boosts bilateral trade to over $100 billion
- Enables smoother logistics, especially for gems, textiles and electronics
- Opens investment routes for UAE-based funds and family offices
2. India–Australia Economic Cooperation and Trade Agreement (ECTA)
- Zero duties on 85% of Indian exports to Australia
- Covers services, especially ed-tech, fintech and higher education
- Enhances scope for academic partnerships India and student mobility
- Encourages Australian investment in clean energy and agri-tech
3. Ongoing Negotiations
- India–UK FTA: Focus on financial services, legal reforms and sustainable energy
- India–EU FTA: Digital trade, carbon neutrality, pharmaceuticals and data regulation
- India–Canada CEPA: Mobility for professionals and Indian diaspora linkages
When concluded, these agreements will dramatically enhance FDI attraction services India and in-country investor outreach Asia.
Strategic Advantage for Foreign Companies
Companies based in treaty-partner countries enjoy:
- Lower import duties for setting up operations or sourcing from India
- Simplified visa and workforce mobility protocols
- Streamlined customs and compliance norms
- Access to trade facilitation and dispute resolution channels
- Opportunity to become part of India’s regional supply chains
These translate to faster, cheaper and more resilient India market entry support.
Role of IAC in Trade-Linked Investment Planning
At IAC, we:
- Identify investment routes and exemptions based on bilateral treaties
- Offer sector-specific breakdowns of trade agreement benefits
- Support strategic positioning of EDBs and IPAs during negotiations
- Facilitate India delegation support and government engagement
- Craft tailored investor communications aligned with bilateral trade developments
What to Watch in 2026
- India’s deeper engagement in Indo-Pacific trade platforms
- Expansion of mobility provisions in services and education
- Trade-led incentives for manufacturing, pharmaceuticals and digital goods
Conclusion
India’s expanding web of bilateral trade agreements reflects a more open and globally aligned investment strategy. For foreign companies, they are not just about trade—they are strategic entry points to expand business in India, access incentives and build lasting partnerships.
With IAC as your guide, these agreements become more than policy—they become platforms for execution.