India's New Free Trade Deals with UK, EU and New Zealand Set to Boost Trade

India's free‑trade agreement with the United Kingdom takes effect on 15 July 2026. The deal eliminates import duties on Indian goods and introduces a double‑contribution convention that returns the 25 % salary levy previously taken by the UK to Indian workers' Provident Fund accounts, earning 8.25 % tax‑free interest. The pact is projected to raise India's GDP by about £5.1 billion a year and the UK's by £4.8 billion.

In New Zealand, a free‑trade agreement concluded in a record nine months includes a pledge of US$20 billion in New Zealand investment over 15 years and a target to double bilateral trade by 2030. Both nations have upgraded ties to a Strategic Partnership and laid out a roadmap for deeper cooperation across trade, agriculture, security and innovation.

India is also pursuing broader trade expansion after securing a free‑trade deal with the European Union, signalling a wider push to deepen market access worldwide. Analysts note that while India’s agreements with Australia, ASEAN and Japan have faced delays and persistent trade deficits—particularly in coal and refined petroleum—these partnerships are crucial for securing critical minerals and supporting the country’s clean‑energy and semiconductor ambitions.