India Nears FTA Deals with EU, Chile & New Zealand: A Push for Export Growth and Mineral Security.
India is fast-tracking FTA negotiations to boost exports in labour-intensive sectors and secure rare earth minerals for industrial resilience.
India’s trade diplomacy is gaining momentum. Negotiations for Free Trade Agreements (FTAs) with the European Union, Chile, and New Zealand are expected to conclude by year-end, signalling a strategic pivot toward export diversification and supply-chain security.
With the European Union — India’s largest trading partner (12.2% of total trade) — talks are in the final phase. Consensus is emerging on contentious issues like automobiles, whisky, and wine. The EU seeks tariff cuts on cars (currently taxed at 70–110%) and wines (150% duty). In return, India is pressing for lower duties on textiles, leather, and gems & jewellery — sectors employing millions.
Sources indicate the deal could be signed as early as November, following the EU delegation’s visit to New Delhi (Nov 3–7).
🇨🇱 With Chile, India’s focus is strategic. The Comprehensive Economic Partnership Agreement (CEPA) aims to strengthen access to critical minerals—especially as China tightens rare earth exports vital for EVs, electronics, and defence. The third negotiation round in October 2025 emphasized digital services, MSME cooperation, and investment facilitation, expanding beyond traditional goods trade.
🇳🇿 With New Zealand, the fourth round of talks (Nov 3–7, Auckland) targets faster consensus on Rules of Origin, goods, and services trade.
These simultaneous negotiations reflect a strategic shift — India is reducing overdependence on single markets like China and tapping new export destinations amid evolving global supply chains.
📊 Sectors likely to benefit:
Textiles & apparel: