1. Deep Dive: The “Big Three” New Agreements This Year (2025)
The three agreements—signed or operationalized in 2025—represent the most significant shift in India’s trade policy, moving beyond Asian partners to Western and Middle Eastern economies.
A. India-Oman CEPA (Signed Dec 18, 2025)
- India’s Gains (Exporting to Oman):
- Immediate Zero Duty: Oman has eliminated duties on 98.08% of tariff lines.
- Key Sectors:
- Textiles & Apparel: Full duty elimination (previously 5% duty), giving India an edge over competitors.
- Gems & Jewellery: Duty-free access.
- Automobiles: Indian cars now enter Oman duty-free.
- Agriculture: Meat (bovine), fresh eggs, vegetables, and processed foods.
- Pharmaceuticals & Medical Devices: Zero duty, plus faster regulatory approval.
- Oman’s Gains (Exporting to India):
- Zero Duty / Reduced Duty: India offered concessions on 77.79% of tariff lines.
- Key Sectors:
- Petrochemicals: Polypropylene and Polyethylene (subject to a Tariff Rate Quota – TRQ).
- Dates: Duty-free access up to a specific quota (2,000 tonnes).
- Marbles: Duty-free access for Omani marble blocks (quota-based).
- Excluded (No Concessions): India kept Gold, Silver, Dairy, and Tea protected (standard tariffs apply).
B. India-UK CETA (Signed July 24, 2025)
- India’s Gains (Exporting to UK):
- Immediate Zero Duty: 99% of Indian goods enter the UK duty-free.
- Key Sectors:
- Labour Intensive Goods: Textiles, Leather, Footwear, and Carpets (major gain as these faced 4-12% duties previously).
- Marine Products: Shrimps and frozen seafood (duty-free).
- IT Services: Not a “tariff” sector, but the deal guarantees visa norms for Indian IT professionals.
- UK’s Gains (Exporting to India):
- Zero Duty / Phased Cuts: India reduced tariffs on 90% of UK exports, but many are phased rather than immediate.
- Key Sectors:
- Scotch Whisky: Tariffs cut from 150% to 75% immediately, eventually dropping to 30-40% (not zero, but a massive reduction).
- Automobiles: Tariffs cut from 100% to 10% for a limited quota of premium UK cars.
- Machinery & Auto Parts: Zero duty on intermediate parts to help Indian manufacturing.
- Processed Food: Cheese, biscuits, and lamb meat (quota-based duty cuts).
C. India-EFTA TEPA (Effective Oct 1, 2025)
- India’s Gains (Exporting to Switzerland, Norway, etc.):
- Zero Duty: 100% of Indian industrial goods enter EFTA nations duty-free.
- Key Sectors: Organic chemicals, textiles, apparel, and light engineering goods.
- Services: EFTA has committed to $100 billion investment in India over 15 years to create 1 million jobs (a unique feature of this deal).
- EFTA’s Gains (Exporting to India):
- Zero Duty / Phased Cuts: India offered concessions on 82.7% of tariff lines.
- Key Sectors:
- Machinery & Tools: Duty-free to support Indian factories.
- Pharmaceuticals: High-tech medicines get easier access.
- Swiss Watches & Chocolates: Phased tariff reduction (becoming cheaper over 5–7 years).
- Gold: Excluded. Duties on Swiss gold remain high to protect India’s current account
Snapshot of Established Major Agreements
| Agreement | Sectors India Exports Duty-Free (Zero Tariff) | Sectors Partner Exports to India Duty-Free (or reduced) |
| India-Australia ECTA | 100% of tariff lines.• Textiles & Apparel• Leather & Footwear• Gems & Jewellery• Furniture | • Coal (Coking & Thermal) – Crucial for Indian steel• Wool & Sheep Meat• Critical Minerals (Lithium, Cobalt)• Wines (Phased reduction, not zero yet) |
| India-UAE CEPA | • Gems & Jewellery (major gain)• Textiles & Apparel• Electronics• Engineering Goods | • Crude Oil & LPG (Zero duty)• Dates & Copper• Gold (1% tariff concession, not zero)• Petrochemicals |
| India-Japan CEPA | • Apparel (Zero duty)• Seafood (Shrimps)• Spices & Tea | • Industrial Machinery• Steel (High-grade)• Auto Parts• Chemicals |
| India-ASEAN FTA | • Bovine Meat• Leather goods• Chemicals | • Palm Oil (Reduced duty, major import)• Electronics components• Wood & Rubber products |
3. Sector-Wise “Winner” Analysis
If you are looking at specific industries, here is who won the “Jackpot” in these agreements:
- Textiles & Leather (India’s Big Win): Achieved Zero Duty in every major recent deal (UK, Australia, Oman, UAE). This was India’s #1 negotiating priority to compete with Bangladesh and Vietnam.
- Whisky & Wine (Partner’s Big Win): The UK (Whisky) and Australia (Wine) managed to crack India’s high tariff wall, securing massive duty cuts (though not total elimination) for the first time in history.
- Gold (The Red Line): India refused to give zero duty on Gold in the EFTA (Switzerland) and UAE deals to prevent import surges, offering only marginal discounts (1% lower than standard) to the UAE.
Services (The Hidden Win): In the UK and EFTA deals, India traded goods access for Service Sector gains—specifically easier visas for IT workers (UK) and binding investment commitments (EFTA).