India's 2025 Trade Diplomacy & Bilateralism: UPSC Current Affairs Analysis & Study Strategy

In-Depth Analysis

The Big Picture

In 2025, India has shifted from a defensive, multilateral-first trade posture to an aggressive, diversified bilateral strategy. This transition is characterized by a record-breaking pace of FTA negotiations (e.g., New Zealand in 9 months) alongside a firm demand for structural reforms at the WTO. The overarching tension lies between India's 'Atmanirbhar Bharat' (self-reliance) goals and the pragmatic necessity of securing market access in the West and the Indo-Pacific to reach its export targets.

Cross-Theme Insight

Together, these threads reveal a 'Dual-Track Diplomacy' model: India is decoupling its trade interests from US-China tensions while simultaneously building a 'Non-EU/Non-RCEP' economic fortress. By finalizing deals with the UK, EFTA, GCC, and EAEU concurrently, India is mitigating the risk of US protectionism (35-50% tariff threats) and EU carbon-tax barriers. The inclusion of binding investment commitments (like the $100bn from EFTA) marks a shift from 'Trade-in-Goods' to 'Investment-led-Trade' agreements.

Textbook vs Reality Gap

Standard textbooks like Vivek Singh's *Indian Economy* (7th ed, p. 393) state that 'until now India has mainly focused on partnering with other Asian countries.' However, 2025 reality shows a radical pivot toward the Global North and Oceania (UK, EFTA, Australia, NZ). Furthermore, while textbooks focus on the 2013 Bali Ministerial's 'Peace Clause' for food security (CAPF 2014, NID: 10507), the 2025 threads emphasize 'operational changes' to WTO governance and technical standards like the 'AEO Programme' recognition, moving beyond just subsidy disputes.

How This Theme Is Evolving

The theme evolved from sectoral 'Early Harvest Schemes' to 'High-Impact Comprehensive Agreements' (CETA, TEPA). The trajectory for 2026 suggests India will move towards becoming a 'Rule-Maker' in green commerce and digital trade, as urged by the WTO Chief.

UPSC Exam Intelligence

Previous Year Question Pattern

Recent questions show a shift from basic WTO history (GATT-WTO transition, CDS-I 2009, NID: 7947) to specific components of Ministerial Packages (Bali TFA, IAS 2017, NID: 5728). There is an increasing focus on the mechanics of trade agreements like RCEP and ECTA (CDS-II 2024, NID: 14712). Questions are moving from 'What is the WTO?' to 'How do trade agreements impact domestic growth/standards?' (CDS-I 2024, NID: 13231).

Probable Prelims Angles

• Membership of EFTA (Switzerland, Norway, Iceland, Liechtenstein) vs EU members
• Terms of the India-EFTA TEPA ($100 billion investment commitment over 15 years)
• Reciprocal tariff rates between India and US (currently at 18% after being 50%)
• Definition and global recognition of India's Authorised Economic Operator (AEO) Programme
• Eurasian Economic Union (EAEU) member states (Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan)

Mains Answer Framework

• India's 2025 trade strategy marks a paradigm shift from 'defensive protectionism' to 'proactive bilateralism,' as evidenced by the concurrent finalization of FTAs across three continents.
• Strategic Autonomy through Diversification: Reducing dependency on the US/China through agreements with EFTA, GCC, and EAEU.. Trade-Investment Linkage: Analyze the shift from mere tariff reduction to binding FDI commitments (e.g., EFTA's $100bn deal).. WTO Reform Advocacy: India's role as the 'Voice of the Global South' in demanding a functional Dispute Settlement Body and addressing non-tariff barriers.
• While bilateralism provides immediate gains, the long-term success of India's trade offensive will depend on domestic structural reforms and the ability to integrate into global value chains without compromising agricultural livelihoods.

Essay Connections

• 'The Future of Globalisation: Bilateralism vs Multilateralism' - Use the 2025 FTA wave vs WTO stalemate as a case study.
• 'Economic Diplomacy as a tool of Foreign Policy' - How India uses FTAs to cement ties in the Indo-Pacific (Australia/NZ).

Preparation Strategy

Reading Approach

Begin with Vivek Singh's 'International Organizations' chapter to understand the hierarchy of trade agreements (PTA -> FTA -> CEPA). Then, overlay the 2025 current affairs threads to see how India is skipping 'Early Harvest' stages to sign 'Comprehensive' deals directly.

Textbook Roadmap

• Indian Economy, Vivek Singh (7th ed.), Chapter 13.13. Threads 1, 3, 5, 8. Definitions of FTA, CEPA, CECA, and the analysis of the India-Australia ECTA.
• Understanding Economic Development, NCERT Class X (2025), Chapter 4. Threads 2, 4. The role of WTO in liberalisation and its impact on developing nations.

Revision Bullets

• October 1, 2025: Date the India-EFTA TEPA comes into effect.
• August 20, 2025: Signing of Terms of Reference (ToR) with EAEU in Moscow.
• 18%: Current U.S. tariff rate on Indian goods (lowered from 50%).
• 34: Number of operational changes India proposed to the WTO in 2026.
• 9 Months: Record duration to conclude the India-New Zealand FTA.
• USD 100 Billion: FDI commitment from EFTA over 15 years.

Sub-Themes and News Coverage (8 themes, 33 news items)

India's 2025 Global FTA Expansion Drive

Focus: A concentrated wave of Free Trade Agreement (FTA) advancements, signings, and operationalizations with diverse non-US/EU partners throughout 2025.

UPSC Value: Demonstrates India's strategic shift towards aggressive bilateralism and trade diversification across multiple geographies (UK, EFTA, EAEU, GCC, NZ).

7 news items in this theme:

• 2025-11-30 [International Relations] — India-New Zealand Free Trade Agreement (FTA)
  The India-New Zealand Free Trade Agreement was concluded in December 2025, after being announced in March 2025. The FTA was completed in a record nine months, making it one of India's fastest negotiated trade deals. The agreement aims to double the current bilateral trade of $1.3 billion in five years. India will receive zero-duty access for all exports to New Zealand.
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  UPSC Angle: India-New Zealand Free Trade Agreement (FTA) concluded in December 2025.

  Key Facts:

  • India-New Zealand Free Trade Agreement concluded in December 2025
  • Bilateral trade target: Double the current $1.3 billion in five years
  • India will receive zero-duty access for all exports to New Zealand
• 2025-09-29 [International Relations] — Piyush Goyal discusses FTAs with various countries
  Minister Piyush Goyal stated that India is in FTA discussions with the United States, New Zealand, Oman, Peru, Chile, and the European Union. He also mentioned that Qatar and Bahrain are eager to begin trade pact negotiations with India.
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  UPSC Angle: India in FTA discussions with US, NZ, Oman, Peru, Chile, EU.

  Key Facts:

  • India is discussing FTAs with the United States, New Zealand, Oman, Peru, Chile, and the European Union
  • Qatar and Bahrain are eager to enter into trade pact negotiations with India
  • India and the Eurasian Economic Union (EAEU) signed Terms of Reference (ToR) to begin FTA negotiations in August
  • Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will come into force from Oct. 1, 2025
  • The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion
• 2025-09-03 [International Relations] — India-GCC FTA Talks Relaunched
  India and the Gulf Cooperation Council (GCC) are set to formally relaunch negotiations for a Free Trade Agreement (FTA), after the first attempt was initiated more than two decades ago. The two sides are scheduled to sign the Terms of Reference (ToR) for the proposed agreement. The GCC is a key trade and economic partner for India; apparel exports from India to the GCC stood at US $ 1.79 billion in 2024–25.
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  UPSC Angle: India and the GCC relaunch FTA talks.

  Key Facts:

  • India and the GCC are set to formally relaunch FTA negotiations.
  • The two sides are scheduled to sign the Terms of Reference (ToR) for the proposed agreement.
  • The GCC comprises Saudi Arabia, the United Arab Emirates (UAE), Oman, Qatar, Bahrain and Kuwait.
  • Apparel exports from India to the GCC stood at US $ 1.79 billion in 2024–25.
  • Cumulative investments from GCC exceeding USD 31.14 billion as of September 2025.
• 2025-09-01 [Economy] — India–EFTA Trade Agreement
  The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), signed on 10 March 2024 in New Delhi, will come into effect on 01 October 2025. The agreement includes a binding commitment on investment and job creation, with a USD 100 billion FDI commitment over 15 years and aims to generate 1 million direct jobs in India.
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  UPSC Angle: India–EFTA Trade Agreement comes into effect on Oct 1, 2025.

  Key Facts:

  • India-EFTA TEPA effective date: October 1, 2025
  • FDI commitment: USD 100 billion over 15 years
  • Job creation target: 1 million direct jobs
  • Dedicated India–EFTA Desk operational since Feb 2025
• 2025-08-20 [International Relations] — India signs Terms of Reference document with Eurasian Economic Union (EAEU)
  India and the Eurasian Economic Commission (EEC) signed a 'Terms of Reference' document in Moscow on August 20, 2025, to expedite free trade agreement negotiations. Bilateral trade between India and the EAEU reached US$69 billion in 2024, a 7 percent year-on-year increase. The EAEU includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.
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  UPSC Angle: India signs Terms of Reference with Eurasian Economic Union for FTA.

  Key Facts:

  • Terms of Reference (ToR) signed in Moscow on August 20, 2025
  • India's Additional Secretary in the Department of Commerce and Mikhail Cherekaev, Deputy Director of the Trade Policy Department at the Eurasian Economic Commission (EEC) signed the document
  • Bilateral trade between India and the EAEU reached US$69 billion in 2024
  • 7 percent year-on-year increase in trade
  • EAEU includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan
• 2025-07-25 [International Relations] — India-UK Comprehensive Economic and Trade Agreement (CETA)
  India and the United Kingdom signed a Comprehensive Economic and Trade Agreement (CETA) aimed at strengthening bilateral relations across trade, defense, technology, education, and climate action. The agreement aims to double bilateral trade in goods and services by 2030, targeting an increase from $56 billion to $120 billion. The FTA grants zero-duty access on 99% of tariff lines for Indian exports to the UK, covering goods, services, mobility, investment and social security exemptions.
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  UPSC Angle: India-UK Comprehensive Economic and Trade Agreement (CETA) signed.

  Key Facts:

  • India and UK signed CETA on July 25, 2025.
  • Aims to double bilateral trade from $56 billion by 2030.
  • FTA grants zero-duty access on 99% tariff lines for Indian exports to the UK.
  • India's exports to UK rose by 12.6% to $14.5 billion.
  • India's services exports to UK grew by 16% to £14.7 billion.
  • Double Contribution Convention (DCC) prevents dual social security payments for temporary workers.
• 2025-05-15 [Economy] — India's Agri Export Regime Concerns
  India has signed multiple Free Trade Agreements (FTAs) with the UK, EFTA bloc, and finalized terms for an India–US trade deal; however, agriculture remains excluded from these deals, raising concerns over India's long-term agri-export strategy. Agri-export value fell to $48 billion in 2023–24, from $52 billion in 2022–23.
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  UPSC Angle: Agriculture excluded from India's FTAs with UK, EFTA, US.

  Key Facts:

  • Agri-export value: $48 billion in 2023–24
  • Agri-export value: $52 billion in 2022–23
  • Basmati rice contributes 21% of total agri exports
  • Institutions like APEDA and ODOP-GI tags support promotion and branding
  • Agriculture largely excluded from recent FTAs with UK, EFTA, and US

2025 US Trade Protectionism and Tariff Negotiations

Focus: Actions taken by the Trump administration in 2025 to leverage tariffs as a tool for economic negotiation and pressure against major trade partners Canada and India.

UPSC Value: Analyzes the shift toward unilateral trade policies, the impact of protectionism on global supply chains, and the use of economic leverage in modern diplomacy.

5 news items in this theme:

• 2026-02-21 [Economy] — US Supreme Court Blocks Trump's IEEPA Tariffs
  The U.S. Supreme Court struck down President Donald Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA), 1977, ruling that the action exceeded presidential authority. The court stated that the U.S. Constitution grants Congress the authority to levy taxes and tariffs, not the President. Trump had invoked IEEPA to impose tariffs without Congressional approval, which the Court deemed an overreach of executive power.
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  UPSC Angle: US Supreme Court blocked Trump's IEEPA tariffs.

  Key Facts:

  • The U.S. Supreme Court ruled 6-3 against Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA), 1977
  • IEEPA was enacted in 1977 under President Jimmy Carter
  • Over $175 billion was collected under IEEPA-based tariffs
  • $195 billion in net customs duty receipts in FY 2025
• 2025-08-03 [International Relations] — US Lowers Tariffs on Indian Goods to 18%
  The United States will lower tariffs on Indian goods to 18 percent, U.S. President Donald Trump and Indian Prime Minister Narendra Modi announced separately. Most Indian goods have faced 50 percent U.S. tariffs since late August: a 25 percent punitive tariff over Indian purchases of Russian oil and a 25 percent so-called reciprocal tariff.
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  UPSC Angle: US lowers tariffs on Indian goods to 18 percent.

  Key Facts:

  • US to lower tariffs on Indian goods to 18 percent
  • Most Indian goods faced 50 percent US tariffs since late August
• 2025-08-01 [International Relations] — US Imposes Tariffs on Canada
  The U.S. imposed a 35% tariff on some Canadian goods, drawing disappointment from Canadian Prime Minister Carney, who affirmed the government's focus on domestic control measures. The tariff impacts non-free trade goods, potentially affecting Canadian jobs, with the Bank of Canada estimating an effective tariff rate between 5 and 7%.
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  UPSC Angle: U.S. imposes 35% tariff on some Canadian goods.

  Key Facts:

  • US President Donald Trump imposed tariffs on trade with dozens of countries.
  • Tariff on some Canadian goods: 35%
  • Mark Carney expressed disappointment.
  • The 35% tariff applies to non-free trade goods.
  • Bank of Canada estimates effective tariff rate between 5 and 7%.
• 2025-06-19 [International Relations] — Canada to adjust metal counter tariffs against U.S.
  Canada will adjust counter-tariffs on steel and aluminum products on July 21 to levels “consistent” with progress made during trade negotiation with the United States, announced by Prime Minister Mark Carney. If Canada doesn't get a trade deal with the US within 30 days, the country will impose a new wave of counter tariffs on American products.
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  UPSC Angle: Not exam-relevant

  Key Facts:

  • Counter-tariffs on steel and aluminum
  • July 21
  • 30-day deadline for trade deal with US
• 2025-05-31 [Economy] — US Tariff Increase Impacts Indian Exporters
  Global Trade Research Initiative (GTRI) reports that U.S. President Donald Trump's decision to double tariffs on imported steel and aluminum will negatively affect the profitability of Indian exporters.
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  UPSC Angle: US tariff increase impacts Indian exporters.

  Key Facts:

  • U.S. President Donald Trump
  • Double tariffs on imported steel and aluminium
  • Global Trade Research Initiative (GTRI)

India's Strategic Engagement with the WTO (2025-2026)

Focus: A collection of events detailing India's multifaceted interactions with the World Trade Organization, ranging from disputes and policy reviews to technical recognition and reform proposals.

UPSC Value: Essential for understanding India's shift from defensive trade posturing to active rule-shaping and technical compliance in global trade governance.

4 news items in this theme:

• 2026-01-07 [International Relations] — India's WTO Proposal for Operational Changes
  India has proposed 34 operational changes to the World Trade Organization (WTO) to improve its operations, including a cooling-off period before hiring ambassadors and making dispute settlement more accessible for developing countries.
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  UPSC Angle: India proposes 34 operational changes to the WTO to improve operations.

  Key Facts:

  • Proposal: 34 operational changes to WTO
  • Objective: Improve WTO operations
  • Changes include: Cooling-off period for hiring ambassadors, accessible dispute settlement
• 2025-10-22 [Economy] — India's AEO Programme Recognized at WTO
  India's Authorised Economic Operator (AEO) Programme has received global appreciation at the WTO. The AEO Programme is a voluntary trade facilitation initiative under the World Customs Organization's (WCO) SAFE Framework, recognizing trusted traders who comply with customs laws and maintain secure international supply chains.
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  UPSC Angle: India's AEO Programme recognized at WTO.

  Key Facts:

  • India's AEO Programme received global appreciation at the WTO
  • AEO Programme is a voluntary trade facilitation initiative
  • Under the World Customs Organization's (WCO) SAFE Framework
• 2025-07-17 [International Relations] — WTO bats for transparency through additional notification obligations amid US tariffs
  Amidst rising concerns over US tariffs, the WTO is emphasizing transparency through additional notification obligations for its members. This comes as India faces challenges due to the 50% tariffs imposed by the US in August 2025, which include a 25% reciprocal tariff and a 25% penalty linked to India's purchases of Russian oil.
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  UPSC Angle: WTO bats for transparency amid US tariffs.

  Key Facts:

  • US imposed 50% tariffs on India in August 2025, including a 25% reciprocal tariff and a 25% penalty on Russian oil purchases.
  • India filed a WTO challenge in response to the tariffs.
• 2025-07-11 [International Relations] — India Gears Up for Trade Policy Review as EU Calls for WTO Alternative
  India is preparing for a trade policy review amid calls from the EU for an alternative to the WTO. The focus is on agriculture and the auto industry as an Indian team heads to the US for trade talks.
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  UPSC Angle: India prepares for trade policy review amid EU calls for WTO alternative.

  Key Facts:

  • Trade policy review
  • EU
  • WTO
  • Agriculture
  • Auto industry

India's Strategic Push for WTO Reforms

Focus: India's consistent diplomatic advocacy for structural reforms at the World Trade Organization throughout 2025, focusing on dispute settlement, non-tariff barriers, and developing nation rights.

UPSC Value: Crucial for understanding India's multilateral trade diplomacy, its leadership of the Global South, and preparations for the MC14 ministerial.

4 news items in this theme:

• 2025-11-15 [International Relations] — WTO Chief Urges India to Lead Global Trade Reforms
  WTO Director-General Ngozi Okonjo-Iweala called upon India to take a leadership role in reforming the global trade framework, emphasizing the need for rules-based trade and highlighting India's potential due to its digital strength and growing capabilities in green commerce. Speaking at the 30th CII Partnership Summit on November 14, 2025, she noted India's opportunity to lead discussions at the multilateral trade body, resisting a shift towards a power-centric model. She also highlighted India's strong economic fundamentals and projected growth, reinforcing its potential as a reliable partner in reshaping global trade norms.
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  UPSC Angle: WTO urges India to lead global trade reforms.

  Key Facts:

  • WTO Director-General: Ngozi Okonjo-Iweala
  • Event: 30th CII Partnership Summit
  • Date of Summit Mention: November 14, 2025
  • Projected Growth: Above 6% in 2024–25
  • Value of digitally delivered services: Nearly $5 trillion
  • Growth rate of digitally delivered services: 6% to 8% annually
  • Commerce Minister: Piyush Goyal
  • WTO Ministerial Conference: Cameroon
  • India will lead reform in consultation with developing and less developed countries
  • India is a responsible global citizen and voice of the global south
  • Meeting: 30th partnership summit of CII being held along with the government of Andhra Pradesh in Vishaka Patnham
  • Ministerial to be held in Cameroon in March
• 2025-08-25 [International Relations] — India's Trade Negotiators to Strategize for WTO
  India's trade negotiators are meeting to strategize for the next WTO ministerial conference (MC14) and prepare for the country's eighth trade policy review (TPR). The focus includes WTO reform, restoring the dispute settlement mechanism, and addressing trade distortions.
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  UPSC Angle: India's trade negotiators to strategize for WTO.

  Key Facts:

  • India's trade negotiators to meet in the week of August 25
  • Focus on preparing for MC14 and India's TPR
  • India's TPR is held every five years; the last one was in 2021
  • MC14 is planned for 2026
  • India insists on WTO reform, particularly the dispute settlement mechanism
• 2025-06-06 [International Relations] — India Pushes for WTO Reforms at Paris Ministerial
  At a WTO ministerial meeting in Paris, India advocated for reforms to address trade distortions and strengthen multilateral governance, raising concerns about non-tariff barriers like sanitary measures and import quotas that restrict market access. India also emphasized addressing distortions from non-market economies and reviving the WTO dispute settlement system while opposing plurilateral initiatives and expanding the WTO's mandate beyond traditional trade issues.
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  UPSC Angle: India pushes for WTO reforms at Paris Ministerial meeting.

  Key Facts:

  • India proposed reforms at a mini-ministerial WTO meet in Paris, attended by 25 member nations.
  • India raised concerns over sanitary and phytosanitary measures, technical standards, anti-dumping suits, import quotas, and import licensing as non-tariff barriers.
  • India pointed out China's export quota on rare earths as an example of distortions caused by non-market economies.
  • India opposes the multi-party interim arbitration arrangement (MPIA) as an alternative to the WTO dispute settlement system.
  • India is against bringing plurilateral initiatives like the investment facilitation for development (IFD) under the WTO's framework.
  • India opposes the EU's proposed carbon tax, viewing it as an expansion of the WTO's mandate beyond traditional trade issues.
  • WTO Reforms
  • Paris
  • non-tariff barriers
  • sanitary and phyto-sanitary measures
  • technical standards
  • anti-dumping suits
  • import quotas
  • import licensing
  • EU's maximum residue levels for India’s non-basmati parboiled rice
• 2025-04-25 [International Relations] — WTO's Relevance and India's Perspective
  An op-ed discusses the WTO's declining effectiveness and the need for reforms, highlighting India's role in advocating for developing countries and seeking solutions for issues like agricultural subsidies and public stockholding. The article also points out the challenges posed by consensus-based decision-making and the weakening of the WTO's dispute settlement mechanism.
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  UPSC Angle: WTO's relevance and India's perspective on reforms.

  Key Facts:

  • The WTO follows a consensus model requiring agreement from all 164 members.
  • India has advocated for greater policy flexibility for developing nations in trade-related matters.
  • India sought a permanent solution for public stockholding, which stalled negotiations during the Doha Round.

India's Global Trade Agreement Offensive (Non-EU)

Focus: India pursuing or finalizing trade agreements with major non-EU partners (UK, US, EAEU) during the same 2025 period.

UPSC Value: Demonstrates India's strategy of diversifying trade partners and reducing dependency on any single bloc through simultaneous bilateral negotiations.

4 news items in this theme:

• 2025-06-12 [International Relations] — India-US Trade Agreement Target
  India and the U.S. aim to finalize a trade agreement by the end of 2025 or target 2030 to boost bilateral trade and investments, resolving existing trade disputes.
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  UPSC Angle: India and US aim to finalize a trade agreement by 2025/2030.

  Key Facts:

  • India
  • US
  • trade agreement
  • 2025
  • 2030
  • trade disputes
  • aluminum
  • steel industry
• 2025-06-09 [International Relations] — India-EAEU Free Trade Agreement Discussions Expected
  Discussions concerning a free trade agreement between India and the Eurasian Economic Union (EAEU) are anticipated to commence in 2025, according to Andrey Sobolev, the Russian Trade Commissioner in India. The EAEU is an international economic union that champions the free movement of goods, services, capital, and labor.
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  UPSC Angle: India-EAEU Free Trade Agreement discussions expected to commence in 2025.

  Key Facts:

  • Free trade agreement
  • India
  • Eurasian Economic Union (EAEU)
  • Andrey Sobolev
  • Russian Trade Commissioner in India
  • May 29, 2014
• 2025-05-08 [International Relations] — India-UK Free Trade Agreement (FTA)
  India and the United Kingdom have signed a Free Trade Agreement (FTA) after nearly three years of negotiations, marking India's first major trade agreement outside Asia. The FTA aims to reduce or eliminate customs tariff and non-tariff barriers on substantial trade between them, covering both goods and services. The bilateral trade of about USD 60 billion is projected to double by 2030.
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  UPSC Angle: India-UK Free Trade Agreement (FTA) signed.

  Key Facts:

  • Signed between India and the United Kingdom.
  • Negotiations formally launched in 2022.
  • Aims to reduce or eliminate customs tariff and non-tariff barriers.
  • Covers goods and services, investment, mobility of professionals, and regulatory cooperation.
  • 99% of Indian exports to the UK will have zero-duty access.
  • India will cut tariffs on 90% of UK tariff lines, with 85% becoming zero-tariff within 10 years.
  • Bilateral trade of about USD 60 billion is projected to double by 2030.
  • It is India's 16th FTA and the UK's most significant bilateral trade deal post-Brexit.
  • About 100 additional annual visas for Indian professionals, particularly in IT and healthcare.
  • India and the UK also signed a Double Contribution Convention Agreement (also called a Social Security Agreement).
• 2025-04-12 [International Relations] — India keen on interim trade deal with US
  India is reportedly interested in pursuing an interim trade deal with the United States during a period of paused negotiations. This reflects India's strategy to engage with the US on trade matters and potentially secure some benefits in the short term.
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  UPSC Angle: India keen on interim trade deal with US.

  Key Facts:

  • Countries: India, US
  • Deal type: Interim trade deal

India's Trade Diplomacy Milestones in the Oceania Region

Focus: Specific milestones, anniversaries, and conclusions of bilateral free trade agreements between India and its partners in the Oceania region (Australia and New Zealand) during 2025.

UPSC Value: Useful for analyzing India's 'Act East' policy and its strategic economic pivot towards the Indo-Pacific through bilateral trade diversification with Commonwealth partners.

3 news items in this theme:

• 2025-12-30 [International Relations] — India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) Update
  The India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), a bilateral free trade agreement implemented in December 2022, has completed three years of operation. Signed on April 2, 2022, the agreement focuses on high-impact liberalization in goods trade with commitments in services and investment.
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  UPSC Angle: India-Australia ECTA completed three years of operation.

  Key Facts:

  • India–Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) completed three years of operation
  • Implemented in December 2022
  • Signed on April 2, 2022
  • Bilateral free trade agreement between India and Australia
• 2025-12-24 [International Relations] — India-New Zealand FTA
  India and New Zealand concluded free trade agreement talks, with India set to gain duty-free access to New Zealand markets. The agreement is projected to bring approximately $20 billion in investments over the next 15 years and double trade between the two countries, aiming for $5 billion within five years, achieved through tariff reductions and removals on about 95% of New Zealand's exports to India. The deal prioritizes mobility and people-centric linkages, including allowing 5,000 Indian professionals access to three-year work visas.
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  UPSC Angle: India and New Zealand concluded free trade agreement talks.

  Key Facts:

  • FTA with New Zealand focuses on sectoral caution and strategic clarity
  • Includes mobility clauses for Indian professionals
  • Aims to double trade in five years
  • First FTA led by a women-led team
  • India
  • New Zealand
  • Free Trade Agreement (FTA)
  • Duty-free access for India to New Zealand markets
  • $20 billion investment expected over 15 years
  • Target to double trade to $5 billion within 5 years
  • Tariff removal/reduction on 95% of New Zealand exports to India
  • 5,000 Indian professionals can access 3-year work visas
  • Priority sectors: IT services, healthcare, education, traditional medicine
• 2025-04-03 [International Relations] — India-Australia ECTA Completes Three Years
  On April 2, 2025, the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) completed three years of its signing.
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  UPSC Angle: India-Australia ECTA completed three years of signing.

  Key Facts:

  • India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA)
  • Completed three years of signing
  • April 2, 2025

Evolution of the 2025 India-US Trade Framework and Agricultural Market Access

Focus: The items track the progression of India-US trade relations in 2025, from informal export growth and diplomatic recalibration to domestic sectoral concerns and the formalization of an interim agreement.

UPSC Value: Demonstrates the complexities of bilateral trade diplomacy, specifically the tension between macro-level trade targets and micro-level domestic sectoral impacts (GS-2: Bilateral Agreements).

3 news items in this theme:

• 2025-09-05 [International Relations] — India-US Interim Trade Agreement
  The United States and India have established a framework for an Interim Agreement to address trade barriers and provide sustained, preferential market access. The agreement reaffirms commitment to the broader U.S.-India Bilateral Trade Agreement (BTA), which began on February 13, 2025, under President Trump and Prime Minister Modi. India will eliminate or reduce tariffs on US industrial and agricultural goods, including dried distillers’ grains, tree nuts, fresh fruit, soybean oil, and wine.
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  UPSC Angle: India-US Interim Trade Agreement framework established.

  Key Facts:

  • The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025, on originating goods of India.
  • India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years.
  • The United States and India commit to address discriminatory or burdensome practices and other barriers to digital trade and to set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules as part of the BTA.
• 2025-07-04 [Economy] — HP farmers concerned about India-US trade deal impact
  Himachal Pradesh farmers are worried that a trade deal between India and the US could lead to cheaper apples flooding the market, negatively impacting their livelihoods. This issue is related to GS-2, specifically concerning bilateral relationships and the impact of trade agreements on different sectors.
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  UPSC Angle: India-US trade deal's impact on HP farmers affects agricultural livelihoods.

  Key Facts:

  • Concerns of HP farmers regarding cheaper apples
  • India-US trade deal implications
• 2025-07-03 [Economy] — US farm exports to India surge despite lack of trade deal
  Despite the absence of a comprehensive trade agreement, US farm exports to India have been increasing. The US has softened claims about gains secured from India, tempering wording in a factsheet and removing mentions of certain pulses.
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  UPSC Angle: US farm exports to India increase despite lack of trade deal.

  Key Facts:

  • The updated factsheet tempers the wording in one section from 'committed' to 'intends', removes the mention of 'certain pulses' from another section, and drops one point altogether.

India-US Bilateral Trade and Tariff Negotiations

Focus: Developments concerning India's diplomatic strategy, industry recommendations, and framework specifics for reducing trade tariffs with the United States in early 2025.

UPSC Value: Crucial for understanding India's shift toward bilateralism in trade policy and the role of industry stakeholders in shaping foreign trade agreements.

3 news items in this theme:

• 2025-03-09 [Economy] — Textile Exporters Suggest Tariff Reductions with the U.S.
  Textile exporters are recommending reducing tariffs with the U.S.
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  UPSC Angle: Not exam-relevant

  Key Facts:

  • Tariff reduction
  • Textile exporters
  • United States
• 2025-03-09 [International Relations] — Proposed India-US Trade Deal
  The India-US trade framework, finalized on February 7, 2026, is expected to be signed in March. As part of the deal, Washington is planning to reduce tariffs on Indian goods to 18% from the previously announced 50% in August 2025.
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  UPSC Angle: Proposed India-US trade deal aims to reduce tariffs on Indian goods.

  Key Facts:

  • India-US trade deal framework finalized: February 7, 2026
  • Signing of deal expected: March 2025
  • US to slash tariffs on Indian goods to: 18%
  • Previous tariff announcement (August 2025): 50%
• 2025-03-08 [International Relations] — The Hindu: Focus on Bilateral Trade Talks with the U.S.
  The Hindu reports that the Centre is focusing on bilateral trade talks, rather than reciprocal tariffs, with the U.S.. The article also covers India-China relations after the Modi-Xi meet.
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  UPSC Angle: Not exam-relevant

  Key Facts:

  • Centre focusing on bilateral trade talks with U.S.