India’s International Trade and Development Cooperation
India’s trade policy and development cooperation framework are closely linked to its wider economic diplomacy. Through free trade agreements, concessional finance, and technical assistance, India seeks better market access, stronger bilateral ties, and support for partner countries.
Trade Architecture and Portfolios
The Ministry of Commerce and Industry administers India’s international trade policy.
- Union Minister: Shri Piyush Goyal
- Minister of State: Shri Jitin Prasada
- Trade network: India has concluded nine free trade agreements covering 38 countries.
- Economic reach: These agreements represent about USD 60 trillion in combined GDP and nearly two-thirds of global trade.
Overview of Recent Trade Agreements
India has negotiated several economic partnerships to improve export access, attract investment, and widen cooperation in goods, services, and mobility.
| Agreement | Date of entry into force / signing | Key provisions |
| Trade and Economic Partnership Agreement (TEPA) with EFTA | October 1, 2025 | Secures USD 100 billion in foreign direct investment and creates 1 million direct jobs in India over 15 years. |
| India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) and Double Contributions Convention (DCC) | July 15, 2026 | Removes or reduces tariffs on 99% of Indian goods entering the UK and 90% of UK goods entering India. |
| India–Oman Comprehensive Economic Partnership Agreement (CEPA) | June 1, 2026 | Eliminates the baseline 5% import tariff on over USD 3.6 billion of Indian goods and removes tariffs on pharmaceutical exports. |
| India–New Zealand Free Trade Agreement | Signed: April 27, 2026; operational: October 2026 | Offers duty-free access for 100% of Indian exports and secures a USD 20 billion investment commitment over 15 years. |
| India–European Union Free Trade Agreement | Concluded: January 27, 2026 | Provides preferential, duty-free entry for over 99% of Indian exports to the European Union. |
| India–United States Bilateral Trade Agreement (first phase) | February 2026 | Framework established with details pending finalisation on reciprocal preferential terms. |
Development Cooperation and the DPA
India’s outbound development cooperation is managed through the Development Partnership Administration (DPA) under the Ministry of External Affairs.
- Year of set-up: 2012
- Core functions: Concessional financing, international technical training, grant projects, and cultural conservation programmes.
- Project role: The DPA coordinates projects from conception to commissioning.
- Operational focus: It supports timely delivery, capacity building, and quality control.
- Credit lines: India has extended more than 260 concessional Lines of Credit valued at over USD 26 billion to nearly 62 recipient nations.
The IDEAS Framework and Outbound Assistance
The Indian Development and Economic Assistance Scheme (IDEAS) channels concessional Lines of Credit to developing countries in line with India’s economic capacity and foreign policy priorities.
- Purpose: To support development partnerships through concessional lending.
- Administrative continuity: The Union Government revamped and continued the IDEAS framework through March 31, 2026.
- Recent approvals: During the year preceding July 2026, India approved six development Lines of Credit worth about ₹17,550 crore.
- Grant support: Around 60 grant-based projects valued at nearly ₹4,500 crore were sanctioned in the same period.
Key Prelims Takeaways
- Commerce Ministry leadership: Shri Piyush Goyal is the Union Minister of Commerce and Industry, and Shri Jitin Prasada is the Minister of State.
- FTA footprint: India has nine concluded free trade agreements covering 38 countries.
- Global significance: The FTA network covers nearly two-thirds of global trade and about USD 60 trillion in combined GDP.
- TEPA with EFTA: The agreement targets USD 100 billion in FDI and 1 million direct jobs over 15 years.
- India–UK CETA and DCC: Tariffs are reduced or removed on 99% of Indian goods entering the UK and 90% of UK goods entering India.
- Development Partnership Administration: Set up in 2012 under the Ministry of External Affairs, it handles concessional finance, technical training, and grant projects.
- IDEAS and credit lines: India has extended more than 260 concessional Lines of Credit worth over USD 26 billion across nearly 62 countries.
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Originally written on
April 22, 2026
and last modified on
September 5, 2026.
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