FREE PREVIEW Week 4-5 3 lessons

India's Foreign Relations 2026

India's trade agreements, the Prime Minister's visits and India's ties with major partners and neighbours in 2026.

Lessons in this module

India and Europe: The India-EU FTA and More

Lesson • 5 quiz questions

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India, the US and the Indo-Pacific

Lesson • 5 quiz questions

Read notes ↓

Neighbourhood, West Asia and Central Asia

Lesson • 5 quiz questions

Read notes ↓

Lesson notes

1. India and Europe: The India-EU FTA and More

2026 was a landmark year for India's ties with Europe. India and the European Union finished talks on a free trade agreement that had started in 2007, and India's trade agreement with the United Kingdom came into force. Prime Minister Narendra Modi also attended the G7 summit in France.

India-EU Free Trade Agreement

European Council President António Costa and European Commission President Ursula von der Leyen were the chief guests at India's Republic Day parade on 26 January 2026.
On 27 January 2026, at the India-EU Summit in New Delhi, India and the EU announced the conclusion of FTA negotiations.
Ursula von der Leyen called it the 'mother of all deals', creating a free trade zone of about two billion people.
The EU says tariffs will be removed or cut on almost 97% of EU exports to India.
At the same summit, India and the EU agreed a Security and Defence Partnership and signed an agreement on mobility.
The FTA still has to be legally checked, signed and ratified (including by the European Parliament) before it comes into force.

India-UK and EFTA

The India-UK Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, came into force on 15 July 2026.
A social security agreement (Double Contribution Convention) with the UK came into force along with it.
The India-EFTA Trade and Economic Partnership Agreement (TEPA) with Switzerland, Norway, Iceland and Liechtenstein has been in force since October 2025.
EFTA countries have committed to aim for 100 billion US dollars of investment in India over 15 years under TEPA.

PM Modi's visits in Europe

In June 2026, PM Modi visited France and Slovakia, and attended the 52nd G7 summit at Évian-les-Bains, France, as an outreach guest.
The G7 summit was hosted by French President Emmanuel Macron, as France held the G7 presidency in 2026.
On the sidelines of the G7 summit, he held bilateral meetings with several world leaders.

Quick facts

Republic Day 2026 chief guests: António Costa and Ursula von der Leyen (EU)
India-EU FTA concluded: 27 January 2026, New Delhi
'Mother of all deals': Ursula von der Leyen on the India-EU FTA
India-UK CETA in force: 15 July 2026
India-EFTA TEPA in force: 1 October 2025
G7 summit 2026: Évian-les-Bains, France (June 2026)

💡 Do not mix up 'concluded', 'signed' and 'in force'. India-EU FTA: concluded in January 2026. India-UK CETA: signed in 2025, in force from 15 July 2026.

📝 5-question quiz on this lesson: enrol free to take it and track your score.

2. India, the US and the Indo-Pacific

India's trade relationship with the United States went through many changes in 2026 because of US tariff decisions. At the same time, India signed and implemented trade deals with Oman and New Zealand and deepened ties with Indo-Pacific partners.

India-US trade

On 6 February 2026, India and the US released a framework for an interim trade agreement, a step towards a broader Bilateral Trade Agreement (BTA).
Under the framework, the US cut its 'reciprocal' tariff on Indian goods to 18% and removed the extra 25% tariff linked to India's purchase of Russian oil.
On 20 February 2026, the US Supreme Court ruled 6-3 that the IEEPA law does not allow the President to impose tariffs, striking down those tariffs.
The US then imposed a temporary global tariff under Section 122 of the Trade Act of 1974, and India-US talks continued under the new tariff situation.
Commerce Minister Piyush Goyal met US Trade Representative Jamieson Greer during the G20 trade ministers' meeting in Milwaukee, USA; no final deal had been signed by mid-October 2026.

New trade agreements

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into effect on 1 June 2026.
India and New Zealand signed a Free Trade Agreement in New Delhi on 27 April 2026; it came into force on 20 October 2026.
India and Canada formally launched talks for a Comprehensive Economic Partnership Agreement (CEPA) in March 2026.

Indo-Pacific visits

From 6 to 11 July 2026, PM Modi visited Indonesia (6-8 July), Australia (8-10 July) and New Zealand (10-11 July).
In Indonesia he visited Jakarta and Yogyakarta; in Australia, Melbourne; in New Zealand, Auckland.
India and these countries discussed trade, defence, education and Indo-Pacific cooperation.

Quick facts

India-US interim framework: February 2026; US tariff on India cut to 18%
US Supreme Court tariff ruling: 20 February 2026; IEEPA does not allow tariffs (6-3)
Section 122 tariff: Temporary US global tariff after the court ruling
US Trade Representative: Jamieson Greer
India-Oman CEPA in effect: 1 June 2026
India-New Zealand FTA: Signed 27 April 2026
India-Canada CEPA talks: Formally launched March 2026

💡 Exams like to ask about the 18% tariff and the US Supreme Court ruling of 20 February 2026. Remember that IEEPA is the International Emergency Economic Powers Act.

📝 5-question quiz on this lesson: enrol free to take it and track your score.

3. Neighbourhood, West Asia and Central Asia

India's neighbourhood saw new governments in 2026, and India continued high-level engagement with West Asia and Central Asia. This lesson covers India's ties with Bangladesh and Nepal, the Prime Minister's visit to Israel, and the SCO summit.

New governments next door

Bangladesh's new BNP government under Prime Minister Tarique Rahman took office in February 2026, after 18 months of interim rule.
Nepal's new RSP government under Prime Minister Balendra Shah took office in March 2026.
India's official position, as stated by the Ministry of External Affairs, is to work with elected governments in neighbouring countries under its 'Neighbourhood First' policy.

PM Modi's visit to Israel

PM Modi visited Israel on 25 and 26 February 2026, his second visit to Israel after 2017.
He addressed the Knesset, Israel's parliament, during the visit.
India and Israel discussed security, technology, trade and agriculture cooperation.

SCO and Central Asia

PM Modi attended the summit of the Shanghai Cooperation Organisation (SCO) in Bishkek, Kyrgyzstan, on 31 August and 1 September 2026.
Kyrgyzstan held the SCO chair for 2025-26.
The SCO has ten member states, including India, China, Russia, Pakistan, Iran and Belarus.

Quick facts

Bangladesh PM: Tarique Rahman (from February 2026)
Nepal PM: Balendra Shah (from March 2026)
PM Modi in Israel: 25-26 February 2026; addressed the Knesset
Knesset: Parliament of Israel
SCO summit 2026: Bishkek, Kyrgyzstan (31 August-1 September)
India's neighbourhood policy: Neighbourhood First

💡 Link each visit to its city: Knesset in Jerusalem (Israel), SCO in Bishkek (Kyrgyzstan), G7 in Évian (France), BRICS in New Delhi (India).

📝 5-question quiz on this lesson: enrol free to take it and track your score.

Other modules in Current Affairs 2026: India & World

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