India has accelerated a push to finalize several free trade agreements over the next few months to offset the impact of steep U.S. import tariffs and widen export destinations during growing global trade uncertainties.
New Delhi is in advanced talks with the European Union, New Zealand and Chile and this week is set to sign its first agreement under the renewed push with Oman, according to Indian officials who spoke on condition of anonymity as the details are not yet public.
Prime Minister Narendra Modi is expected to be in Oman's capital Muscat when the India-Oman free trade agreement, or FTA, is signed Thursday, officials said.
The deal aims to boost bilateral trade and push India’s exports of engineering goods, textiles, pharmaceuticals and agricultural products, officials said.
FTAs are a central pillar of India’s economic strategy as it seeks deeper integration into global supply chains, stronger export growth and sustained job creation. By lowering tariffs and setting predictable trade rules, the pacts would help Indian businesses remain competitive and expand access to newer markets.
With global trade increasingly shaped by tariff disputes and geopolitical tensions, India is betting that a wider network of trade agreements will help cushion external shocks and anchor its export ambitions.
The stepped-up negotiations come as Indian exporters face pressure from higher U.S. import tariffs of 50%, which went into effect in August. While the two countries have been negotiating a bilateral trade agreement, the tariffs have weighed on sectors such as textiles, auto components, metals and labor-intensive manufacturing.
“India is clearly using FTAs as a strategic tool to diversify export markets and soften the impact of steep and uncertain U.S. tariffs,” trade analyst Ajay Srivastava said.
In all, India has 15 FTAs covering 26 countries and six preferential trade agreements with another 26 nations while negotiating with more than 50 other partners, Srivastava said.
Once the ongoing talks conclude, India will have trade agreements with virtually all major global economies except China, he added.
India signed comprehensive economic cooperation and trade agreements with the UAE and Australia in recent years, lifting bilateral trade with both countries. In May, Britain and India announced they agreed on a hard-wrought FTA that will slash tariffs on products including Scotch whisky and English gin shipped to India and Indian food and spices sent to the U.K.
The recent agreements have reinforced the case for faster negotiations and clearer frameworks for business, officials said.
“India is negotiating several FTAs” at a time of challenges in global trade, Trade Secretary Rajesh Agarwal told reporters this week. “I see positive progress on several of these, next year.”
Despite renewed momentum, challenges remain as Indian negotiators face pressure to protect small farmers and domestic industries even as trading partners push for greater market access.
India and the U.S. hoped to have the first tranche of a bilateral trade agreement by the fall, but it has not come through as ties have strained following India’s unabated purchase of discounted Russian crude oil. Washington says the purchases help fund Moscow’s war machine in the ongoing war with Ukraine.
In recent weeks, there have been signs of tempers cooling. Modi applauded Trump’s peace plan to end the Russia-Ukraine war and the two leaders recently spoke over the phone to discuss mutual interests including trade.
A team of U.S. negotiators led by Deputy Trade Representative Rick Switzer visited New Delhi last week and held talks with Indian officials.
Switzer discussed a India-U.S. economic and technological partnership as well as opportunities to boost two-way trade, India’s Foreign Ministry said in a statement.
New Zealand’s Trade and Investment Minister Todd McClay met his Indian counterpart Piyush Goyal last week. They discussed key aspects of an FTA and explored ways to advance the negotiations for mutual benefits, Goyal said on X.
EU Trade and Economic Security Commissioner Maros Sefcovic also met Goyal last week to review progress on the India-EU FTA and explore ways to resolve issues and advance negotiations. – AP/RSS
you need to login before leave a comment
Write a Comment
Comments
No comments yet.