2025 RECAP: 5 LUCRATIVE BILATERAL ECONOMIC TIES FORGED BY INDIA

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.

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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.

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.

India - US Trade Deal