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India's swooping moves- Trade Deals

India has been treading on a path of chaos since the first quarter of 2025. Because the US administration had undergone a radical change towards international trade and foreign policy, the countries across the globe had to restructure their approach. This was a chaotic phase for everyone, as the tariffs imposed by the Americans affected many of their prominent exported items, which increased their production and labor costs. India also faced higher tariffs compared to its Southeast Asian counterparts, making its trade significantly less advantageous.

                                                                               India's swooping moves- Trade Deals
India's swooping moves- Trade Deals

The only way forward is to forge new alliances with other nations, which are much more reliant and resilient in terms of long-term relationships. This would only pledge a long-lasting relationship. Considering all the facts, India went forward and signed a couple of deals. These deals were considered to be a power move by India, as it needs to keep its people's interests at the forefront.


India Oman CETA

India and Oman signed a ‘comprehensive economic trade agreement’ (CETA), which was the last but one before the New Zealand trade agreement. Under the agreement of the main highlights include a collaboration on enhancing the ability of the medium and small-scale industries, creating new venues for employment. This agreement also fosters the aspect of reduction of customs procedures and thereby reduces the costs of imports for both parties. In other initiatives as part of the deal, it is also to collaborate in terms of the protection and conservation of the natural resources. This also includes the protection of the financial systems as well.


India-New Zealand Free Trade Agreement

The end of 2025 saw India sign an FTA with New Zealand, which would help both the nations which would help mend the cracks in the supply chain aspect of both trading parties. This partnership would mean a buffer for both economies to hedge their economies against geopolitical shocks and supply chain disruption. The deal is more in line with the promotion of the services sector. The Kiwis have decided to partner with  India in industries like construction, tourism, IT, fintech, and telecom. This partnership will benefit India in terms of enhancing the quality of work from the future workforce, produced over a period of time.


India UK CETA

Both nations signed the comprehensive trade agreement in the month of July 2025. This provides India with a duty-free access to trade with the United Kingdom for 99 % of goods and services. This also includes many of the labor-intensive goods produced in India, such as engineering goods, gems, and auto parts, to name a few from the laundry list of items. A breakthrough for India is the Double Contribution Convention that will save Indian firms and workers more than INR 4,000 crore by removing the need for dual social security contributions. One of the important highlights of the trade agreement is that the “rules of origin “are being simplified for seamless trade. In simple terms, for small items being exported with a value under 1000 UK pounds, there is no requirement for documentation. This also extends to easy mobility access for professionals travelling to the United Kingdom.


All these agreements point India in the right direction. This would help India garner more opportunities for Indians and their respective counterparts. The growing tensions caused by geopolitics have disrupted jobs, trade, and opportunities for a holistic collaboration among nations. The fruits of the partnerships would take time for India to gain benefits, and it's definitely a step in the right direction.


Greetings to all, a very Happy and Prosperous 2026 !!!

2 Comments

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Guest
Jan 02
Rated 5 out of 5 stars.

The way India is going in terms of trade agreement is a double-edged sword in my opinion as India has always exposed themselves whenever they have expanded the trade diameter.

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Guest
Jan 02
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I totally second it. But with the tariffs in place , one needs to make a tactical move to sustain in terms of trade. Else any nation would face a major fall out. Its a risk worth taking for India at least

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