India-UK FTA Likely to Be Operationalised by April as Talks Intensify, Says Commerce Secretary

India and the UK are making a genuine effort to operationalise their bilateral free trade agreement by April this year, Commerce Secretary Rajesh Agrawal said on Monday, signalling momentum in one of India’s key trade partnerships.

India and the UK signed the Comprehensive Economic and Trade Agreement on July 24, 2025. Under the pact, 99 percent of Indian exports will gain zero duty access to the British market. In return, India will reduce tariffs on select British products, including cars and whisky.

The agreement requires approval from the UK Parliament before implementation. In India, such agreements are cleared by the Union Cabinet. Once the British Parliament gives its nod, the pact will be enforced on a mutually agreed date.

“I think both sides are working to operationalize it as fast as possible. As some reports have come in the news that it may be operationalized in April, we are making an effort towards that. But I don't know whether that is the date or it will happen beyond that. But we are trying. Our genuine effort on both sides is to see if we can meet the April deadline,” Agrawal told reporters.

India-Mercosur Trade Pact Expansion Under Discussion​

Agrawal also highlighted progress on expanding the India-Mercosur preferential trade agreement.

He said a joint trade committee under the existing preferential trade agreement is holding meetings to finalise the scope of an expanded pact. Both sides are working to widen the current arrangement and determine the framework for a broader agreement.

“We are trying to finalize the scope of an expanded preferential trade agreement. Both sides are wanting to expand the preferential trade agreement between India and Mercosur. And the teams are engaged in deciding on what would be a scope for this future expansion,” he said.

He expressed hope that the exercise could be completed in the coming months.

Mercosur is a Latin American trading bloc comprising Brazil, Argentina, Uruguay and Paraguay. The India-Mercosur preferential trade agreement came into effect on June 1, 2009. However, it currently covers only 450 tariff lines, limiting its overall scope.

Both sides are now looking at expanding the arrangement into a more comprehensive agreement.

Brazil President Luiz Inacio Lula da Silva will undertake a five day visit to India beginning February 18. During his visit, he will hold talks with Prime Minister Narendra Modi and participate in the AI Impact Summit.

India-Israel FTA Talks Underway​

On the India-Israel front, the Commerce Secretary said both countries have signed the terms of reference to formally begin negotiations for a free trade agreement. The terms were signed in November last year.

“We are into negotiations with Israel,” Agrawal said.

When asked whether progress could be achieved during Prime Minister Narendra Modi’s likely visit to Israel from February 25 to 26, he said he does not foresee an outcome in the next few months.

“I personally don't see an outcome in terms of FTA in the next few months. It will take some time. But we are working fast,” he said.

The terms of reference include provisions for market access for goods through elimination of tariff and non tariff barriers, investment facilitation, simplification of customs procedures, enhanced cooperation in innovation and technology transfer, and easing norms to promote trade in services.

India-Canada FTA Talks Resume​

Agrawal also said India and Canada are engaged in finalising the terms of reference for a proposed free trade agreement.

“Both sides are engaged on it and we are progressing,” he said.

Negotiations between the two countries were earlier paused by Canada in 2023. The talks are now set to resume from the beginning, as global trade dynamics have evolved significantly over the past two years.

The terms of reference will outline the scope and modalities of the proposed trade pact, marking the first formal step towards restarting comprehensive negotiations between the two countries.