India's Free Trade Agreements 2025-26: What NRIs Need to Know About UAE CEPA, UK, Australia, and New Deals

Overview: India's Expanding Trade Network

As of early 2026, India has positioned itself as a confident global trade player with nine Free Trade Agreements now covering 38 countries. This represents a significant evolution from the India-Mauritius FTA in 2021 to a comprehensive network spanning multiple continents and economic blocs. For NRIs, this expansion signals real opportunities to participate in bilateral trade, cross-border investments, and services exports under preferential frameworks.

Active Agreements: Timeline and Key Milestones

UAE CEPA (Comprehensive Economic Partnership Agreement)

The UAE-India CEPA remains one of India's most mature and impactful trade agreements. The deal spans 18 chapters and 11 annexes, eliminating or reducing tariffs on over 80% of products (some sources cite 90%+ tariff lines). Many items enjoy zero duty from day one, while others benefit from phased tariff reductions. The agreement removes technical barriers to trade and adopts international standards across sectors.

Three-Year Performance (as of February 2025):

• Nearly 240,000 Certificates of Origin issued
• USD 19.87 billion in exports facilitated under preferential duties
• Bilateral merchandise trade grew from USD 43.3 billion (FY 2020-21) to USD 83.7 billion (FY 2023-24)
• Non-oil bilateral trade reached USD 57.8 billion in FY 2023-24, comprising over half of total trade
• Bilateral trade crossed USD 100 billion in FY 2024-25 with 19.6% growth
• Both countries targeting USD 100 billion in non-oil trade by 2030 (target appears on track to be met ahead of schedule)

Tariff Savings: Verify HS codes on the official tariff dashboard to estimate duty charges on your exports or imports. Zero-duty items apply instantly; phased reductions vary by product. Use the market access dashboard available on the UAE Ministry of Economy website to look up your product by HS code and confirm the exact preferential rate.

Services Access: UAE service providers gain preferential access across 11 sectors and over 100 sub-sectors, benefiting NRI professionals in IT, finance, healthcare, and consulting. Mutual Recognition Agreements (MRAs) for qualifications make it easier to obtain temporary work visas in covered categories. Temporary deployment to India in certain professional categories does not require separate work permits under CEPA-covered categories.

Government Procurement: UAE businesses receive 10% price preference in UAE government tenders and access to Indian procurement opportunities, opening doors for NRI-owned firms bidding on contracts. Indian firms similarly enjoy a 10% price preference in UAE government tenders.

Anti-Dumping Exemption: UAE transshipped products are exempt from India's anti-dumping investigations, reducing compliance risk for NRI traders who use UAE as a logistics hub.

Rules of Origin (RoO): To claim preferential tariffs, you must obtain Certificates of Origin (CoO) and ensure your supply chain meets RoO requirements. Non-compliance delays shipments and forfeits duty benefits. Goods must undergo substantial transformation in either India or the UAE to qualify. Verification happens through self-certification or a Certificate of Origin.

Tariff Rate Quotas (TRQ): Sensitive items like gold (HS Chapter 71), plastics (Chapter 39), and copper (Chapter 74) fall under TRQ provisions. The Directorate General of Foreign Trade (DGFT) allocates TRQ through competitive bidding. For example, the first round for 2025-26 was capped at 30 tonnes for gold. NRIs who import or export under TRQ must monitor DGFT notifications closely for bidding timelines and allocation details.

Investment Protections: The CEPA includes a dedicated investment chapter providing meaningful protections for cross-border investments. Non-discrimination clauses ensure investors from either country receive treatment no less favorable than domestic investors or investors from third countries. Both state-to-state and investor-to-state dispute settlement mechanisms are available. If you face unfair treatment on an investment in India routed through the UAE, these mechanisms offer a structured path to resolution.

Withholding Taxes: Investment services under CEPA facilitate portfolio investments in Indian stocks and mutual funds. Withholding taxes on dividends and interest remain subject to the India-UAE Double Taxation Avoidance Agreement (DTAA) limits. NRIs should consult the DTAA schedule for current applicable rates rather than assuming CEPA alone determines tax treatment.

A Joint Committee oversees the agreement, regularly assessing tariff classifications, market access improvements, and revisions. The third Joint Committee meeting was held on November 27, 2025, in New Delhi. NRIs should monitor these updates for changes affecting their sectors, such as gold TRQ reforms, BIS coordination for regulated products like pharmaceuticals and food, and expanded services market access.

Key Sectors Benefiting from UAE CEPA:

• Gems and jewelry (traditional stronghold; benefits from preferential tariffs and smoother export channels)
• Refined petroleum products (major export category)
• Electrical machinery and high-technology goods (boilers, generators, reactors showing strong traction)
• Organic and inorganic chemicals
• Smartphones (USD 2.57 billion in shipments to UAE in FY 2023-24, signaling India's electronics manufacturing ecosystem growth under PLI schemes)
• Agri-products (diversification away from oil and precious metals dependency)

Australia ECTA (Economic Cooperation and Trade Agreement)

The Australia ECTA opened services sectors with preferential access, particularly benefiting NRI professionals and firms in technology, manufacturing, and professional services. The agreement reduces tariffs on goods and enhances cross-border service delivery. Approximately 85% of tariff lines are now tariff-free, with rules of origin favoring Indian exports.

For NRIs investing in or trading with Australia, this agreement:

• Lowers tariffs on Indian goods entering Australia
• Provides preferential market access for Indian services providers
• Supports NRI-owned businesses in Australia seeking to import Indian goods at reduced costs

UK CETA (Comprehensive Economic Trade Agreement)

The UK CETA emphasizes investment protections and services liberalization. As a recent agreement, it opens new opportunities for NRIs in UK-India trade corridors.

Key provisions for NRIs:

• Investment Protections: Safeguards for NRI-owned investments in the UK and Indian entities with UK investors
• Services Sectors: Enhanced access for Indian professionals in IT, finance, legal, and consulting
• Tariff Reductions: Preferential rates on goods traded between India and the UK with phased tariff elimination

EFTA TEPA (Trade and Economic Partnership Agreement)

The EFTA TEPA covers Switzerland, Norway, Iceland, and Liechtenstein. From October 2025 onwards, this agreement mandates strict compliance with Rules of Origin for duty benefits.

For NRIs trading with EFTA countries:

• Ensure your supply chains meet RoO requirements to claim preferential tariffs
• Obtain Certificates of Origin from authorized bodies
• Monitor DGFT notifications for any quotas or special provisions

Recently Announced and Signed Agreements

India-Oman CEPA

This newly signed agreement expands India's trade footprint in the Gulf region with comprehensive tariff reductions and energy/services focus. It aligns with the UAE CEPA model. Details on tariff schedules and implementation dates should be monitored via DGFT notifications. Expected entry into force soon.

India-New Zealand FTA

A new agreement targeting expanded bilateral trade with skilled migration and trade facilitation provisions. NRIs should await official implementation details and tariff schedules. This agreement enables NRI professionals and businesses to operate more easily in Oceania.

India-EU FTA (Comprehensive Trade and Investment Agreement)

This landmark agreement with the European Union significantly expands market access across 27 EU member states. Often referred to as the "Mother of all deals," it covers 2 billion consumers and includes tariff cuts and regulatory alignment in manufacturing and digital trade. FY 2025-26 merchandise trade was USD 136 billion and services trade USD 83 billion.

For NRIs, this opens opportunities in:

• Services, goods, and investment across Europe
• Manufacturing and digital trade sectors
• Regulatory harmonization in key industries
• Phased rollout expected to boost NRI opportunities in Europe

US Interim Agreement Framework

A framework agreement indicating progress toward a comprehensive US-India trade pact. Details on scope and implementation timeline should be monitored. Note that tariff negotiations have been delayed by broader US tariff policies.

What These Agreements Mean for NRIs: Practical Benefits

1. Investment Opportunities

These FTAs create stable, non-discriminatory trade environments that reduce business risk. NRIs investing in Indian companies or sectors benefiting from expanded export markets can expect:

Increased Profitability: Companies exporting under FTA tariff preferences gain competitive advantages, boosting earnings and stock valuations. Sectors like IT, pharmaceuticals, manufacturing, and services firms benefit from preferential access to partner markets.

Sector Growth: The push toward USD 100 billion in non-oil trade by 2030 signals where growth opportunities lie. Align your business and investment plans accordingly.

Remittance-Linked Investments: Lower tariffs reduce costs for NRI-owned businesses, supporting dividend payments and remittances to India. The broader shift away from oil dependence toward diversified non-oil and non-precious metals trade means companies in value-added manufacturing and services could see sustained demand growth.

Listed Company Benefits:

• Gems and Jewelry: Companies like Titan Company, Kalyan Jewellers, and Rajesh Exports benefit from preferential tariffs and smoother export channels
• Pharmaceuticals: Indian pharma companies with UAE and broader Middle East export exposure gain cost advantages and streamlined regulatory pathways
• IT Services: TCS, Infosys, and Wipro gain enhanced cross-border services provisions and expanded market access
• Manufacturing and Engineering: Companies exporting machinery, auto parts, and electronics gain tariff advantages
• Infrastructure and Real Estate: REITs and InvITs with commercial real estate exposure in Gulf-capital-attracting cities (Mumbai, Delhi NCR, Bengaluru) benefit from increased bilateral investment flows
• Textiles and Apparel: Page Industries, Welspun India, and Arvind Ltd benefit from preferential tariff treatment
• Agri-Export Companies: Benefit from tariff reductions and upcoming food safety MoUs (e.g., APEDA with UAE Ministry of Climate Change and Environment)
• Electronics Manufacturing: Companies scaled under India's PLI scheme for electronics now have duty-advantaged export routes into the UAE and re-export markets across the Middle East and Africa

2. Services and Professional Mobility

NRIs in IT, finance, healthcare, consulting, and legal services gain easier market access in partner countries without discriminatory rules. This supports career mobility and business expansion. Services market access spans 11+ sectors and over 100 sub-sectors, including professional services, healthcare, IT, logistics, and education.

3. Trade and Export Benefits

If you are involved in exporting Indian goods or importing goods for resale in India:

Verify HS Codes: Use official tariff dashboards to determine which products qualify for preferential rates. Every product has a Harmonized System (HS) code that determines tariff eligibility.

Obtain Certificates of Origin: Ensure your supply chain meets RoO to claim duty benefits. Without a valid CoO, you cannot claim preferential tariffs. Apply through Indian chambers of commerce, export promotion councils (e.g., APEDA for agricultural products), or authorized government bodies.

Monitor Quotas: Some products (e.g., gold under UAE CEPA) have Tariff Rate Quotas. Track DGFT notifications for availability and bidding windows.

Compliance: For regulated goods (pharma, food, agricultural products), ensure BIS and APEDA compliance to avoid delays. The Joint Committee has focused on resolving BIS licensing issues for regulated products.

4. Government Procurement Access

NRI-owned firms can now bid on government tenders in partner countries with preferential pricing or non-discriminatory treatment. This opens significant contract opportunities in infrastructure, IT, and services sectors.

How to Maximize FTA Benefits: Action Steps for NRIs

Step 1: Understand Your Product's HS Code

• Whether your product qualifies for preferential rates
• The applicable tariff rate under the FTA
• Any quotas or special conditions

Step 2: Ensure Rules of Origin Compliance

• Local Content: A minimum percentage of the product must originate in India or the partner country
• Value Addition: The product must undergo sufficient processing or transformation

Step 3: Obtain Certificates of Origin

• Indian chambers of commerce
• Export promotion councils (e.g., APEDA for agricultural products)
• Authorized government bodies
• For imports into India from partner countries, ensure your supplier provides a valid CoO and file electronic CoOs through ICEGATE (the Indian Customs electronic gateway)

Step 4: Monitor Joint Committee Updates

• Tariff changes or new product inclusions
• Quota updates (e.g., gold TRQ reforms)
• Technical barrier removals
• Investment protection amendments
• Services market access expansions
• BIS licensing resolutions

Step 5: Register with Indian Missions Abroad

• Updates on FTA implementation
• Guidance on compliance
• Support for government procurement bids

Step 6: Align Supply Chains with RoO

Tax and Regulatory Considerations for NRIs

While these FTAs do not directly change NRI taxation rules, they create indirect benefits and require compliance with existing regulations:

Lower Business Costs: Reduced tariffs lower operating costs for NRI-owned businesses, supporting higher profits and remittances.

Investment Returns: Companies benefiting from FTA market access generate higher earnings, boosting dividend payouts and stock valuations.

Remittance Efficiency: Tariff savings reduce costs for NRI-linked supply chains, enabling larger remittances to India.

Tax Residency Rules: NRIs must comply with India's tax residency rules. For example, the 182-day stay requirement determines Resident Non-Ordinary Resident (RNOR) status, which affects tax obligations on Indian income.

Double Taxation Avoidance Agreements (DTAA): India has DTAAs with most FTA partner countries. Combined with FTA trade benefits, NRIs who earn business income from India-partner country trade can potentially structure their affairs to avoid double taxation. Consult a tax advisor who understands both DTAA and FTA provisions.

Capital Gains on Indian Investments: As an NRI investing in Indian equities, mutual funds, ETFs, REITs, or InvITs, your capital gains tax obligations remain governed by Indian tax law (and the DTAA where applicable). FTAs do not change your personal tax rates, but the economic momentum they create can influence returns on India-focused investments.

Tax Collected at Source (TCS) on Remittances: When you send money from India to abroad (under the Liberalised Remittance Scheme, for example), TCS rules apply. FTAs do not alter TCS provisions.

FEMA Compliance: NRIs investing in Indian markets must comply with FEMA regulations regardless of trade agreements. You can invest through your NRE or NRO accounts on both portfolio and repatriable bases, but sectoral caps and reporting requirements remain unchanged.

Liberalised Remittance Scheme (LRS) Cap: NRIs can remit up to USD 250,000 per financial year for permitted current or capital account transactions. FTA benefits do not override this cap. Track official updates via India's Commerce Ministry and RBI guidelines for entry-into-force dates and regulatory changes.

NRE/NRO Account Usage: Verify NRE/NRO account usage for FTA-related trades via RBI guidelines. Consult the Income Tax Act for DTAA benefits to avoid double taxation on FTA-enabled incomes.

Key Dates to Remember

• UAE CEPA: Signed February 18, 2022; Effective May 1, 2022 (ongoing)
• Australia ECTA: Effective December 2022
• EFTA TEPA: Signed March 10, 2024; Entered force October 1, 2025
• UK CETA: Signed July 2025 (implementation ongoing)
• Oman CEPA: Signed December 2025 (implementation pending)
• New Zealand FTA: Negotiations concluded December 2025; Signing planned late April 2026
• EU FTA: Signed January 27, 2026 (not yet in force; IPA under negotiation)
• US Framework: Announced February 7, 2026 (details awaited)
• Third UAE CEPA Joint Committee Meeting: November 27, 2025, in New Delhi

Practical Checklist for NRI Traders and Investors

• [ ] Identify your product's HS code and verify FTA eligibility
• [ ] Confirm Rules of Origin compliance for your supply chain
• [ ] Apply for Certificate of Origin from authorized bodies
• [ ] Monitor DGFT notifications for tariff changes and quotas
• [ ] Register with Indian missions abroad
• [ ] Verify NRE/NRO account usage for FTA-related trades via RBI guidelines
• [ ] Consult a tax advisor on DTAA benefits and double taxation avoidance
• [ ] Track Joint Committee meeting outcomes and tariff schedule updates
• [ ] Ensure BIS and APEDA compliance for regulated goods
• [ ] Monitor bilateral trade developments and sector-specific growth opportunities
• [ ] Review your investment portfolio for FTA-benefiting sectors
• [ ] Confirm compliance with FEMA regulations and LRS cap (USD 250,000 annually)

The Bottom Line

India's expanding FTA network represents a genuine shift in the country's global trade posture. For NRIs, these agreements are not abstract policy documents. They directly affect the cost of doing business, the sectors where opportunities are growing, and the ease with which you can move goods, services, and capital between India and partner countries. The UAE CEPA's three-year track record—with nearly 240,000 Certificates of Origin issued and bilateral trade crossing USD 100 billion—demonstrates the real-world impact these agreements deliver. Take the time to understand how FTAs apply to your specific situation, ensure compliance with Rules of Origin and regulatory requirements, and align your business and investment plans with the sectors and corridors that benefit most from preferential market access. The benefits are real, but only if you actively use them.