But that’s not all.

While Canadian Trade Minister Maninder Sidhu’s visit to India to further talks on bilateral FTAs has been the icing on the cake, an FTA with South American mineral giant Chile is also on the cards this year. 

The FTAs with Canada and New Zealand can come as a big relief to Indian exporters. The agreement with Chile is expected to have a dedicated critical minerals chapter.

New Zealand FTA

Partnering more closely with India helps New Zealand support a stable, rules-based trading order and advance shared interests in security and prosperity. 

Despite India being one of the largest and fastest-growing economies in the world, it is only New Zealand’s 11th largest goods and services export market, with total exports to India of NZ$ 2.03 billion in the year ended December 2025. 

There are significant opportunities to increase trade between the two countries. The New Zealand-India FTA will create valuable opportunities for New Zealand and Indian exporters to expand two-way trade. 

A significant focus on cooperation and technical assistance activities will provide opportunities to grow durable, long-term, and mutually beneficial partnerships between Indian and New Zealand in sectors like forestry, horticulture, apiculture and honey, livestock, fisheries and aquaculture, wine, traditional knowledge, and medicine, tourism, audio visual production and sports.

Around 300,000 persons of Indian origin and NRIs live in New Zealand, making up nearly 5% of its population. This diaspora acts as a cultural and economic bridge, supporting stronger bilateral ties and demand for Indian goods and services.

India and New Zealand announced negotiations for an FTA in March 2025. Following several rounds of negotiations, the FTA was concluded in December 2025, becoming one of India’s fastest concluded FTAs. It enhances market access and tariff preferences for Indian exports to New Zealand, while serving as a gateway to the wider Oceania and Pacific Island markets. 

The agreement opens opportunities for India to emerge as a key supplier of skilled workforce, alongside prospects for future cooperation in areas like AYUSH, yoga instructors, Indian chefs, and music teachers, and services like IT, engineering, healthcare, education, and construction.  

The FTA eliminates duty on 100% of Indian exports and includes a US$ 20 billion investment commitment by New Zealand in India over 15 years, strengthening long-term economic and strategic cooperation. 

Through the Agricultural Productivity Partnership, the FTA collaborates with farmers to boost productivity and integrate them in the global value chains. The FTA boosts MSMEs and jobs through zero-duty access for labour-intensive sectors, including textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods.

Canada FTA

As ties with the US sour, Canada is increasingly looking towards India and Europe. The Indian market and Indian diaspora in Canada add muscle to the proposed FTA. 

Negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between India and Canada are progressing, and the fifth round of talks will begin on 5 October. CEPA could be announced during Prime Minister Narendra Modi’s proposed plan to visit Canada in December. 

Canada represents a market of 41.65 million people (2025) and US$ 2.34 trillion in terms of gross domestic product (GDP) at PPP. The India–Canada CEPA holds significant potential to unlock and expand bilateral trade, which stood at US$ 8.66 billion in FY2024-25.

Key exports from India to Canada include drugs and pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals, among others.

The key imports of India from Canada include pulses, pearls and semiprecious stones, coal, fertiliser, paper and petroleum crude. Key sectors of India’s services exports to Canada include telecommunications, computer and information services, and other business services. 

These sectors hold significant future growth potential and are expected to expand further following the conclusion of CEPA. Canada is also home to over 425,000 Indian students and a strong Indian community. The goal for bilateral trade is to reach US$ 50 billion by 2030.

India-Chile PTA Upgrade

India and Chile are upgrading their existing Preferential Trade Agreement (PTA) into a broader CEPA by the end of this year.

The CEPA aims to build on the existing PTA and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, micro, small and medium enterprises (MSME), and critical minerals, thereby enhancing economic integration and cooperation. 

India and Chile are strategic partners and close allies, sharing warm and cordial relations. Bilateral ties have steadily strengthened over the years with the exchange of high-level visits. 

A Framework Agreement on Economic Cooperation was signed between the two countries in January 2005, followed by the PTA in March 2006. Since then, economic and commercial relations between India and Chile have remained robust and continue to grow.

Chile, being a global leader in copper (it is the world’s biggest producer), lithium (the second biggest producer), and cobalt production, offers significant opportunities for Indian companies looking to secure access to these minerals through greenfield and brownfield mining projects.

This will be India's first FTA with a dedicated critical minerals chapter and will ensure a reliable supply chain to power India’s green transition and semiconductor industry. 

(The writer is a commentator on geopolitics and geoeconomics. Views expressed are personal.)