India's Trade Triumphs and Trials: Navigating Global Free Trade Landscapes

India's Comprehensive Economic Partnership Agreement (CEPA) with Oman will become effective from June 1, 2026, enhancing trade by widening duty-free access. Concurrently, India is negotiating a CEPA with Chile, potentially broadening trade in critical minerals. Existing trade pacts with Japan, South Korea, and ASEAN are under scrutiny for balance improvements.

India's Comprehensive Economic Partnership Agreement (CEPA) with Oman is set to commence from June 1, 2026, as per the Commerce and Industry Minister Piyush Goyal. The agreement promises to boost bilateral trade by offering duty-free access to 98% of India's exports, including textiles and agricultural goods, to Oman. In return, India will reduce tariffs on Omani products such as dates and petrochemicals.

Simultaneously, India is in discussions with Chile to expand their existing preferential trade agreement into a CEPA, targeting broader sectors like digital services and critical minerals. This move could secure vital resources for India's electronics and auto industries, considering Chile's rich lithium and copper reserves.

India's trade agreements with Japan, South Korea, and ASEAN are under review for failing to provide significant export growth. With imports rising but exports stagnant, these pacts are criticized for not offering reciprocal market access. Fresh negotiations with South Korea are suggested to ensure more balanced trade relations.