In a globalized world, strategic cooperation between nations is a must for economic prosperity. India has been investing ample efforts in forging strong bilateral ties with nations across the globe to strengthen its business and technological prowess. The year 2025 saw India engage in negotiations with various countries for free trade agreements to enhance the growth of export-driven domestic production. These agreements address various aspects including lowering tariffs affecting manufacturing and agriculture, regulations on service trade, digital matters like data storage restrictions, protection of intellectual property rights affecting pharmaceutical accessibility, and support for investment initiatives.

Let’s look at five of 2025’s most strategic bilateral ties forged by India with other nations.

India – New Zealand FTA

The trade agreement between India and New Zealand eliminates tariffs on Indian exports to New Zealand, gradually allows New Zealand goods into the Indian market, promotes services trade, includes a $20 billion investment commitment, introduces new visa opportunities, and enhances regulatory cooperation.

In 2024, the bilateral trade in goods and services between India and New Zealand hit $2.4 billion, with India boasting a trade surplus. The FTA sets up a clear and open framework that supports India's economic goals, such as the Viksit Bharat @2047 initiative. This agreement will transform the conditions for market access, trade tensions will decrease, and new opportunities will emerge for businesses, exporters, investors, and service providers in both India and New Zealand.

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The importance of New Zealand extends beyond its small market size to being a key access point to the larger economies of Oceania and the Pacific Islands, which India is looking to strengthen ties with. Having privileged entry to New Zealand can assist Indian companies in expanding their size, establishing their credibility, and understanding regulations. These are important advantages when entering markets in Australia, Pacific Island nations, and other Asia-Pacific regions. From a geopolitical perspective, this also strengthens India's presence in a region where China's economic power is on the rise.

Now the attention is on the formal signing, approval, and execution. Indian companies will be truly tested on their ability to quickly take advantage of reduced tariffs, meet standards, and expand their exports.

If implemented effectively, the FTA has the potential to serve as a model for India's upcoming trade agreements, focusing on practicality, strict timelines, and compatibility with overall strategic goals instead of just prioritizing liberalization for show.   

 

India - US Trade Deal

Piyush Goyal, the Minister of Commerce and Industry, commented that discussions between India and the United States on trade are moving in a favorable direction, highlighting the robust nature of the strong strategic alliance between the two nations. The Ministry of Commerce and Industry announced that Lynch, who serves as the Chief Negotiator for the BTA, recently headed a US team that traveled to India on September 16, 2025. Recognizing the ongoing significance of trade relations between India and the US, the talks were constructive and future-oriented, addressing different facets of the trade agreement.

They agreed to enhance endeavors to reach a favorable Trade Agreement at the earliest opportunity, as per the statement released.    India and the US have conducted five rounds of discussions up to now. The sixth round, which was planned for August, was delayed.  In recent months, there have been discussions about the potential for an interim trade agreement between the two countries.

However, trade tensions heightened following President Donald Trump's announcement in July of imposing a 25 percent tariff on Indian products, which was later increased to 50 percent with an additional 25 percent in August. The implementation of the new tariffs began on August 27.

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India has raised objections to the US request to liberalize its agriculture and dairy industries, which are crucial sectors supporting numerous livelihoods. Goyal emphasized that India has independent relationships with various countries. He highlighted that the relationship with the UAE is separate and strong, built on trust, potential, and opportunities. According to him, India does not mix or rely on its relationships with other countries. He also mentioned that the partnership with the UAE is crucial and strategic in equal measure.

India - Bahrain Talks for Major Trade Deal

India and Bahrain have initiated talks for a promising trade deal and are edging closer to finalizing an investment agreement after External Affairs Minister S Jaishankar engaged in extensive discussions with his Bahraini counterpart Abdullatif bin Rashid Alzayani to enhance their overall relationship. During their discussions, the two ministers reached an agreement to establish a mutual understanding for starting negotiations on a double taxation avoidance agreement (DTAA) to prevent double taxation, ensure tax stability, and boost trade and investment prospects.

Alzayani visited India for a two-day trip with the objective of strengthening bilateral relations in the fields of trade, investment, and defense, especially during a period of conflicts and geopolitical disturbances in West Asia. In his initial statements at the meeting, Jaishankar reiterated India's endorsement of the Gaza peace proposal and expressed hope for a sustainable resolution to the conflict in the region.

Through their conversations, Jaishankar and Alzayani explored strategies to enhance bilateral collaboration in defense, security, economy, trade, investment, health, fintech, space, culture, and interpersonal connections. They also committed to enhancing and diversifying trade in segments such as electronics, petroleum, processed foods, base metals, and precious stones and jewelry, as stated in a collective announcement issued after the talks between Jaishankar and Alzayani.

Bahrain holds significance for India in West Asia, and their bilateral interactions have seen substantial progress in recent years, with trade amounting to $1.64 billion in 2024-25. India is one of Bahrain's top five trade partners, and the Gulf country is home to approximately 332,000 Indian citizens, which make up roughly a quarter of its total population of 1.5 million.

Both sides acknowledged the advancements made towards establishing a joint working group for trade and investment as well as beginning discussions on a Comprehensive Economic Partnership Agreement (CEPA) between the two nations. These measures are anticipated to further bolster trade and investment between India and Bahrain, according to reports.

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India - Japan Collaboration for Manufacturing, Technology, and MSME-led Industrial Growth

The India–Japan Business Summit (IJBS) organized by the Bangalore Chamber of Industry and Commerce (BCIC) brought together leaders from both countries to discuss collaboration in manufacturing, technology, and MSME-led industrial growth. Rather than just being symbolic, this edition of the summit focused on actionable collaboration, including joint ventures, technology transfer, and expanding access to global markets through India and Japan.

Dr. K G Suresh from BCIC Japan Initiatives emphasized the meaningful steps taken in collaboration with Japan, such as seminars, business visits, and partnerships with cities like Osaka. The goal is to strengthen city-to-city and business-to-business cooperation. H E Nakane Tsutomu, Consul General of Japan in Bangalore, highlighted the deep partnership between Japan and India across various sectors, including politics, diplomacy, and economic cooperation. Tomohiro Kaneko from SMRJ emphasized the importance of SMEs in Japan's economy and the increasing interest in collaboration with Indian companies, particularly those in Bangalore. The signing of an MOU between SMRJ and BCIC aims to facilitate business matching and partnerships between Japanese and Indian companies.

India - Canada Resume FTA Talks

India and Canada have agreed to resume discussions on a Free Trade Agreement (FTA) with the goal of increasing bilateral trade to $50 billion by 2030, according to Minister of Commerce and Industry Piyush Goyal. Goyal highlighted that an FTA or CEPA consists of various important elements and serves as a symbol of the strong relationship between the two countries. He expressed plans to start talks on an ambitious CEPA and boost trade by 2030, emphasizing the friendly relationship and lack of competition between the two countries.

He believed that the deal would build confidence among investors and businesses on both sides. Goyal highlighted the potential benefits for businesses and investors from the strong collaboration between India and Canada. In 2023, talks for a Free Trade Agreement (FTA) between India and Canada came to a halt. There have been over six conversations held so far on the trade deal. When two countries enter into a standard trade agreement, they often reduce or eliminate tariffs on various goods they trade with each other.