Daijiworld Media Network – New Delhi
New Delhi, Dec 18: India is accelerating efforts to finalise multiple free trade agreements (FTAs) over the coming months as it seeks to cushion the impact of steep US import tariffs and broaden export destinations amid growing global trade uncertainties.
Officials said India is in advanced negotiations with the European Union, New Zealand, and Chile, and is set to sign its first agreement under this renewed push with Oman this week. Prime Minister Narendra Modi is expected to be in Muscat on Thursday for the signing of the India-Oman FTA, which aims to boost bilateral trade and enhance exports of engineering goods, textiles, pharmaceuticals, and agricultural products.
FTAs are a key component of India’s economic strategy, intended to integrate the country more deeply into global supply chains, stimulate export growth, and support job creation. By lowering tariffs and establishing predictable trade rules, these agreements are expected to help Indian businesses remain competitive and expand into new markets.
The move comes as Indian exporters face pressure from 50% US import tariffs imposed in August, affecting sectors such as textiles, auto components, metals, and labour-intensive manufacturing. Trade analyst Ajay Srivastava said, “India is clearly using FTAs as a strategic tool to diversify export markets and soften the impact of steep and uncertain US tariffs.”
Currently, India has 15 FTAs covering 26 countries and six preferential trade agreements with another 26 nations. Negotiations are ongoing with over 50 other countries, and once completed, India will have agreements with nearly all major global economies except China.
Recent successes, including comprehensive economic cooperation agreements with the UAE and Australia, and a bilateral FTA with the UK announced in May, have boosted trade in sectors ranging from spirits and food products to industrial goods, reinforcing the importance of accelerating negotiations and establishing clear frameworks for businesses.
Trade Secretary Rajesh Agarwal noted, “India is negotiating several FTAs at a time of challenges in global trade. I see positive progress on several of these next year.”
Despite progress, challenges remain, as India seeks to protect small farmers and domestic industries while negotiating greater market access for trading partners. Tensions with the US over India’s purchase of discounted Russian crude oil have slowed bilateral trade talks, though recent communications between leaders and visits by US negotiators indicate warming relations.
In recent developments, New Zealand’s Trade and Investment Minister Todd McClay and EU Trade and Economic Security Commissioner Maros Sefcovic met Indian Commerce Minister Piyush Goyal last week to advance FTA negotiations, signalling momentum in India’s efforts to secure strategic trade partnerships worldwide.