A comprehensive deep-dive into the 4 major agreements defining 2025-2026: UK, Oman, New Zealand, and Mauritius.
After years of negotiation, PM Modi and the UK PM finalized the deal in London. It is the biggest bilateral FTA for the UK post-Brexit.
India cuts tariffs on 90% of UK export lines. 64% become duty-free immediately (Day 1), including Salmon, Medical Devices, and Machinery.
Whisky: 150% duty slashed to 75% immediately, then 40% over 10 years.
Cars: 100% duty cut to 10% (Quota based) for UK Electric/Luxury vehicles.
The Issue: UK's "Carbon Border Adjustment Mechanism" (Carbon Tax) threatened to penalize Indian steel/cement exports.
The deal didn't scrap CBAM. Instead, it creates a "Green Tech Partnership." India gets access to UK green technology to lower emissions, helping exporters meet UK standards over time.
UK banks and insurance firms get "National Treatment" in India. They can operate without opening local subsidiaries. This is massive for the City of London.
No free movement of people, BUT... a specialized visa corridor for IT professionals and intra-company transfers. Social Security payments are now streamlined (No double taxation).
It doubles bilateral trade by 2030. For India, it opens the door to high-end British manufacturing. For the UK, it reduces reliance on China.
A Comprehensive Economic Partnership Agreement (CEPA). Oman is India's gateway to the Gulf Cooperation Council (GCC).
Oman eliminates duties on 98% of tariff lines. This covers 99.38% of India's exports by value.
Textiles & Gems: Historically faced 5% duty. Now 0%.
Agri-Exports: Immediate duty-free access for Indian fruits/vegetables.
India reduces tariffs on 78% of lines (mostly petrochemicals, aluminum, and urea). Critical for India's fertilizer security.
Oman allows Indian companies 100% ownership in key service sectors (IT, Health, Construction) without a local Omani sponsor.
A global first: Oman agrees to recognize Indian AYUSH (Ayurveda/Yoga) practitioners, opening a new service export market for India.
Beyond trade, this solidifies India's access to the Port of Duqm, a key naval logistics hub in the Indian Ocean.
One of the fastest negotiated FTAs. "Forward-looking" deal focused on high-value trade rather than volume.
New Zealand eliminates duties on 100% of Indian exports immediately. Zero tariffs on Textiles, Leather, and Pharma.
India protected its farmers. NZ Dairy (Milk, Cheese, Yogurt) gets NO duty concessions. This was the deal-breaker in past talks.
Tariffs on NZ's famous Mānuka Honey cut from 66% to ~16% over 5 years. A win for NZ without hurting mass Indian honey producers.
NZ creates a "Temporary Employment Entry" visa for 5,000 Indian professionals (Chefs, Yoga Instructors, IT). Also extended post-study work visas for STEM graduates.
A unique cultural clause: Cooperation between NZ's Maori community and India's tribal artisans/Ayush systems.
March 2025: PM Modi visits Mauritius. Relationship upgraded to "Enhanced Strategic Partnership" to counter influence in the Indian Ocean.
India announces a massive economic package for infrastructure (Ports, Airports, and a new Parliament building).
The Fear: New tax rules (Principal Purpose Test) would hurt old investments.
The Fix: India clarified that investments made before 2017 are "Grandfathered" (Exempt), saving billions in disputes.
India and Mauritius inaugurated the airstrip on Agaléga Island. While officially for "development," it is a strategic surveillance outpost for the Indian Navy.
Mauritius becomes the first African nation to fully adopt India's UPI and RuPay payment systems, enabling settlement in local currencies.
Dairy: Excluded in all deals (UK, NZ, Oman).
Data: UK deal includes data flow provisions; others are less specific.
All 4 deals prioritize Services Exports and Mobility over just Goods. India is pivoting to selling "Skills" not just "Stuff."
India has effectively ring-fenced the Indian Ocean (Oman + Mauritius) and broken into the Western High-Value markets (UK + NZ).