List of Free Trade Agreement Countries with India

All those seeking to expand their business abroad must get versed in the international trade agreements and, of course, the list of free trade agreement countries with India. It can be a game-changer for import-export-based businesses as it can result in cost reduction with no tariff. Consequently, your venture can be more profitable. Conversely, establishing a business in a country without free trade can curtail profit margins.

Therefore, knowing the countries that agree with free trade with India can open up new business prospects. Furthermore, overcoming the likely complexities in global shipping is important for cost reduction and smooth business operation for import-export business proprietors. One such approach to streamline the business operation is taking advantage of India’s Free Trade Agreement(FTA). In this blog, we decode the FTAs and share a list of countries having a free trade agreement with India as of 2025. Learn how import export business owners can improve their business’s operation with an optimised shipping strategy.

What Does Free Trade Agreements Means?

Free Trade Agreements (FTAs) are treaties between two or more countries aimed at boosting trade by reducing or eliminating tariffs, export limits, and import quotas. These agreements promote stronger business ties and create cost-effective, seamless trade opportunities.

In short, FTAs help lower import and export costs between the participating nations. As a result, they encourage smoother trade flows. Ultimately, this strengthens economic ties and promotes mutual growth.

Key Features of FTAs

As said earlier, FTAs are designed to create sturdy business relations between countries. FTAs usually mean low or no tariffs on goods and services by removing trade barriers. This boosts business opportunities by easing or eliminating trade restrictions, and FTAs enable smoother cross-border trade. Consequently, they boost efficiency in global supply chains. As a result, trade becomes faster and more cost-effective. In turn, this benefits both economies and businesses by enhancing competitiveness and growth opportunities.

An insight into kinds of FTAs

Free trade agreements are of many kinds, namely bilateral and multilateral.
It refers to agreements between two nations, whereas multilateral agreements signify agreements involving many nations. Bilateral contracts are aimed at finding solutions for any particular trade issues between the two countries. However, multilateral agreements have a broader vision of more cohesive business areas. Furthermore, understanding the differences between these agreements can be highly beneficial. Consequently, businesses can identify the most lucrative FTAs for their specific needs.

Impact of FTAs on International Trade

FTAs facilitates –

Global cooperation
Enhance market accessibility
Foster economic growth or countries involved.
Enhanced customer base
Increase in product demand
Higher revenue generation prospects
More competitive market
Amplifying innovation and efficiency.

Importance of India's Free Trade Agreements

India’s FTAs are the foundation of the country’s trade policy, leading to economic growth by broadening the market’s access for its goods and services. Furthermore, having insight into these agreements is crucial. It is the key to influencing reduced tariffs and improved market entry conditions for internationally operating businesses. As a result, companies can gain a competitive advantage in the global marketplace.

Economic Growth and Market Access

India’s FTAs boost economic growth by opening new markets for its products and services. With reduced or no trade barriers, Indian businesses can expand globally and compete internationally. FTAs also increase profitability, thereby driving economic growth and creating jobs in India. Consequently, they play a vital role in the country’s development. Moreover, they contribute to sustainable economic progress and improved living standards.

Tactical Geopolitical Alliances

Besides financial and economic benefits to countries involved, India’s FTAs nurture stronger bonds with the trading countries. They aid in strengthening the diplomatic and economic bonds.

Consequently, such tie-ups lead to collaboration in other fields, such as technology, infrastructure, and innovation. In addition, they open doors for strategic partnerships. Moreover, they significantly enhance India’s international standing on the global stage.

Commercial Benefits and Competitive Advantage

FTAs for Indian businesses provide a competitive edge by providing the alley to For Indian businesses, FTAs give them a competitive edge with access to foreign markets at reduced costs. This can lead to reduced prices, enhanced brand reputation, and an improved market position. Additionally, businesses can benefit from technology transfer and skill development opportunities through closer international collaboration. Moreover, these partnerships foster knowledge exchange. In addition, they encourage the sharing of best practices. Furthermore, they promote innovation and long-term growth.

List of India’s Free Trade Agreement Countries
India has entered into FTAs agreements with many countries all over the world. Here is an guide with list of free trade agreement countries with India as of 2025:

Comprehensive Economic Cooperation Agreement (CECA)

Singapore: It is one of the crucial and major FTAs. It encapsulates business in services, investments, and goods, through substantial reduction in tariff for those engaged in export business. CECA has immensely benefitted the pharmaceuticals and information technology sectors, as Singapore is a strategic porch to the ASEAN market.
Malaysia: CECA’s objective is to promote trade and reduce tariffs between India and Malaysia. This agreement boosted the textile, automotive parts, and electronic sectors. As a result of CECA, robust exchange of goods and investment have occurred due to trade-favourable conditions.
Sri Lanka: The CECA with Sri Lanka is augmenting bilateral trade and highlights the opening of trade in goods and services. This agreement has underwritten economic ties and allowed Indian businesses to have a foothold in the South Asian market. The trade in the textiles and agriculture sectors has received the major push.

Comprehensive Economic Partnership Agreement (CEPA)

Japan: India’s CEPA has smoothen the trade between Indian and Japan, especially in goods, services, and investments. This partnership has significantly boosted India’s exports in the automotive and electronics sectors. Japan is a chief partner in technology exchange and industrial progress.
South Korea: This agreement has paved the way for more sturdy relation with South Korea and opened the alley for trade in services and goods. The CEPA has played fundamental role in improving bilateral trade in the sectors such as steel, electronics, and information technology sectors between the two nations.
United Arab Emirates (UAE): The CEPA with UAE is a strategic treaty that has augmented business in goods, services, and investments. Indian businessmen got the new market to trade in the Middle Eastern market with it. The agreement between India and UAE has facilitated major exchange in the sectors of construction, hospitality, and renewable energy.

South Asian Free Trade Area (SAFTA)

The SAFTA has resulted major hike in list of free trade agreement countries with India. Its aims has been to lower down trade barriers and increase support among South Asian countries. Here is the list of countries that are part of SAFTA:

1. Bangladesh: Bangladesh has been part of SAATA and is benefitted with enhancement in trade in agricultural and textile products.
2. Sri Lanka: Being part of agreement of SAFTA, Sri Lanka has significantly benefitted with it through phenomenal increase in trade of goods and services. As a result of SAFTA, it has focussed on economic cooperation with neighbouring countries.
3. Nepal: Nepal has also strengthen its economy and developed more with its trade free agreement of SAFTA. It has facilitated trade in essential goods mainly.
4. Bhutan: As a result of agreement, Bhutan has bolster its economy mainly via trade-in hydroelectric power.
5. Maldives: Due to SAFTA, Maldives has been able to strengthen its economy due to tie-ups in tourism and fishery sector.
6. Pakistan: Pakistan is also part of SAFTA, and has been able to give some support to its economy with trade in textile and agriculture sector.
7. Afghanistan: As a member of SAFTA, Afghanistan benefits from improved trade opportunities, supporting its economy and development.

International Bilateral Trade Agreements

Sri Lanka: The India-Sri Lanka FTA focuses on liberalizing trade in goods and services, promoting investment, and enhancing economic relations. This agreement has bolstered bilateral trade volumes and strengthened economic collaboration, particularly in the textile and agricultural sectors.
Mauritius: the bilateral trade agreement facilitates trade in goods with Mauritius. It has opened the doorways for market trade and enhanced trade volume. FTAs have proven to be highly useful in bringing countries closer economically.
Chile: The India-Chile free trade agreement is founded on tariff reduction on a variety of goods and increased trade in mining, technology, and agriculture. The agreement has opened up new avenues for businesses in both countries, improving economic relationships.

ASEAN-India Free Trade Area (AIFTA)

In the list of free trade agreement countries with India, here are few more nations which have strengthened the economic ties via AIFTA. The AIFTA objective is to eliminate tariffs and boost trade between India and the ASEAN (India Free Trade Area), opening a large trade market:

Indonesia: With trade agricultural products and textiles chiefly, it has strengthened financial relations with India.
Thailand: Afterwards the agreement with India, the trade in automotive parts and electronics has increased.
Vietnam: Vietnam and India are trading in textiles and consumer goods, enhancing regional economic cooperation.
Philippines: Since this agreement, trade in agricultural products and services has remarkably increased, strengthening economic ties between India and the Philippines.
Malaysia: This economic tie between India and Malaysia has increased trade in electronics and palm oil trade.
Singapore: Singapore’s extensive market access offered by this agreement has encouraged technology and services trade.
Myanmar: AIFTA has enabled trade in agricultural products and natural resources industries with India.
Cambodia: The pact has strengthened the textile and agricultural commodities trade industries, thus enhancing economic relations between Cambodia and India.
Laos: The treaty has resulted in increased trade in agricultural products and wood, thus promoting economic relations with India.
Brunei: The agreement has facilitated the trade in energy and services, and economic cooperation and market expansion.

Benefits of Free Trade Agreements for Import-export

All nations that are part of list of free trade agreement countries with India has resulted in following benefits to the owners–

Cost Reduction

Import and export cost for businesses get lowered with reduce in tariffs, thereby results in higher profitability. FTAs also aid companies with product sourcing and ensure the availability of products at nominal rates, which enhances cost efficiency. This cost benefit passes on to the consumer also with an increase in sales and attractive pricing.

Market Expansion

FTAs have opened fresh commercial opportunities. Businesses can diversify their client market base and be least impacted by a disruption in one market, as simple access to different and large markets allows them. Moreover, depending on specific markets helps to narrow and widen corporate reach, thereby promoting global awareness and development.

Advantage in Competitiveness

Businesses increase their market position and provide items at reasonable prices by means of exposure to less expensive worldwide marketplaces. Moreover, this competitive advantage results to enhancement in loyalty of customer and long-term stability in business.

Enhanced Supply Chain Efficiency

With fewer barriers to trade, businesses gain the advantage of a supply chain, which results in short delivery times and enhanced customer satisfaction. A streamlined supply chain fosters quick responses to market demands and shortened delivery times.

How to Leverage India's Free Trade Agreements

Here’s the strategy to take full advantage of the FTAs of India-

Stay Updated – it is important to stay versed with the tariff changes and FTA developments to confirm compliance and maximise benefits. Staying informed with amendments and revisions in the norms to develop business strategies and maintain competitiveness.

Optimise Shipping Routes—FTAs can streamline shipping routes and reduce transit time and cost. By route optimisation, businesses can reduce or avoid delays and amplify delivery speed, which in turn increases customer satisfaction and decreases operational expenses.

Better Rates Bargain—By staying updated with reduced tariffs, you can negotiate Better shipping rates with the freight forwarder. Strong relationships with the best logistics partners can result in long-term benefits and improved service excellence.

Explore New Markets

FTAs are handy for exploring new business opportunities. However, by carefully comparing the available options, businesses can better identify the most lucrative conditions. As a result, this leads to brand expansion, increased sales, and ultimately, a stronger national economy.

Conclusion

Understanding and leveraging Free trade agreements can be a tool in structuring a business’s strategy, especially for import-export businesses. Besides cost reduction, market expansion and supply chain efficiency are also improved. FTAs confers manifold business advantages that can strengthen your global presence in the world of trade. Stay updated, work on optimisation of operation, and look for new opportunities by understanding these FTAs. Embrace the power of FTAs to grow your business beyond boundaries on a global platform.

To learn about the list of countries with which India has free trade agreements, call +91-9311595648 or email us at [email protected]. Grow your business with optimised shipping!