India may conclude FTA talks with EU, Chile, New Zealand this year amid export push

India Eyes Year-End Conclusion of FTAs with EU, Chile, and New Zealand to Boost Exports and Secure Rare Earths

The government is fast-tracking trade negotiations with the EU, Chile, and New Zealand to diversify export markets and ensure access to critical minerals amid global supply shifts.

India is moving closer to finalising free trade agreements (FTAs) with the European Union (EU), Chile, and New Zealand by the end of this year. The move comes as New Delhi seeks to expand export opportunities—particularly for labour-intensive sectors—and secure supplies of rare earth minerals, crucial for technology and energy industries.

Sources familiar with the talks said that discussions with the European Union are in their final stages, with both sides expected to reach a breakthrough as early as November. Negotiations with Chile and New Zealand are also progressing rapidly, supported by the Commerce Ministry’s accelerated trade agenda to mitigate the impact of global tariff shifts and geopolitical uncertainties. source: Moneycontrol

India-EU trade deal could be signed by November

The India-EU Free Trade Agreement (FTA)—one of the most ambitious trade deals under negotiation—is reportedly nearing conclusion, with both sides having reached consensus on several contentious issues, including automobiles, whisky, and wine tariffs.

India currently imposes a 150 percent tariff on imported wines from the EU, while completely built-up (CBU) passenger vehicles face a 110 percent duty for cars costing over $40,000 and 70 percent for lower-cost imports. The EU has sought significant tariff reductions in these areas as part of the agreement.

In return, India is pushing for greater market access for textiles, leather, gems and jewellery, and footwear, sectors hit hard by the 50 percent tariff hike imposed by the US earlier this year. A senior team of EU negotiators arrived in New Delhi on November 3 for a five-day round of discussions aimed at resolving the remaining issues and expediting the agreement.

“There is a broad consensus on most key issues. The goal is to announce substantial progress, if not a full deal, by the end of November,” a senior official said.

The European Union is currently India’s largest trading partner, accounting for 12.2 percent of total trade, surpassing the United States (10.8 percent) and China (10.5 percent). It is also India’s second-largest export destination, underscoring the strategic importance of the deal for both sides.

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India-Chile pact aims to secure rare earth minerals

Parallel to the EU talks, India is advancing discussions with Chile to strengthen cooperation in critical mineral supply chains, including rare earths, lithium, and cobalt—essential components for electric vehicles (EVs), electronics, and renewable energy technologies.

The third round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between India and Chile took place in October 2025, following the signing of the Terms of Reference (ToR) in May. The proposed CEPA will build upon the existing trade agreement and expand it to cover digital services, investment promotion, MSME cooperation, and critical minerals.

Chile is one of the world’s leading producers of lithium and copper, making it a strategic partner for India’s energy and technology transition. With China tightening export controls on rare earths and magnets used in electronics and defence manufacturing, the India-Chile pact could help diversify India’s critical supply chains.

“Securing access to rare earths and minerals is a top priority for India’s trade strategy. Chile’s cooperation will play a key role in ensuring mineral independence,” a commerce official said.

India-New Zealand trade talks focus on goods and services

Simultaneously, the fourth round of India-New Zealand FTA negotiations is currently underway in Auckland (November 3–7), focusing on trade in goods, services, and Rules of Origin. Both countries are working to consolidate progress made in earlier rounds and aim for an early conclusion.

The talks follow a steady growth in bilateral trade, which reached $1.3 billion in FY 2024–25, marking a 48.6 percent year-on-year increase. India’s major exports to New Zealand include pharmaceuticals, machinery, precious stones, textiles, and vehicles, while imports primarily consist of wool, iron and steel, aluminium, fruits, nuts, and wood pulp.

“Both nations are aligned in deepening cooperation on trade, technology, and sustainability. The goal is to move beyond goods to broader economic engagement,” the Commerce Ministry noted in its latest update.

Trade diversification becomes a strategic imperative

With the global trade landscape shifting due to tariff barriers and supply chain disruptions, India’s accelerated push for trade diversification is seen as a strategic necessity. The ongoing negotiations with the EU, Chile, and New Zealand align with New Delhi’s broader efforts to expand export destinations and secure strategic resources, reducing overdependence on a few markets.

Experts note that successful conclusion of these agreements could help India offset the impact of US tariff hikes, enhance market access for domestic manufacturers, and strengthen supply resilience in critical sectors.

If completed, these FTAs would represent a major milestone in India’s trade diplomacy, signaling its growing role as a key global trade partner amid shifting economic alliances.

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