NEW DELHI– India has accelerated its efforts to finalize several free trade agreements in the coming months to offset the impact of a sharp crisis. US import tariffs and expand export destinations amid growing global trade uncertainties.
New Delhi is in advanced talks with the European Union, New Zealand and Chile and is expected to sign its first agreement under the new initiative with Oman this week, according to Indian officials who spoke on condition of anonymity because the details are not yet public.
Prime Minister Narendra Modi is expected to be in Muscat, the capital of Oman, during the signing of the India-Oman free trade agreement on Thursday, officials said.
The agreement aims to boost bilateral trade and boost Indian exports of engineering goods, textiles, pharmaceuticals and agricultural products, officials said.
FTAs are a central pillar of India’s economic strategy, which aims for deeper integration into global supply chains, stronger export growth and sustainable job creation. By lowering tariffs and establishing predictable trade rules, the agreements would help Indian companies remain competitive and expand their access to new markets.
As global trade is increasingly influenced by tariff disputes and geopolitical tensions, India is betting that a broader network of trade agreements will help cushion external shocks and anchor its export ambitions.
The intensified negotiations come as Indian exporters face pressure from rising prices in the United States. 50% import dutywhich came into force in August. As the two countries negotiated a bilateral trade deal, tariffs weighed on sectors including textiles, auto components, metals and labor-intensive manufacturing.
“India is clearly using FTAs as a strategic tool to diversify its export markets and mitigate the impact of high and uncertain US tariffs,” said trade analyst Ajay Srivastava.
In total, India has concluded 15 FTAs covering 26 countries and six preferential trade agreements with 26 other countries, while negotiating with more than 50 other partners, Srivastava said.
Once the ongoing negotiations are completed, India will have concluded trade deals with virtually all the world’s major economies, except China, he added.
India has signed comprehensive economic and trade cooperation agreements with the UAE and Australia in recent years, strengthening bilateral trade with the two countries. In May, Great Britain and India announced they had agreed to an elaborate FTA that would reduce tariffs on products such as Scotch whiskey and English gin shipped to India and Indian foods and spices sent to the UK.
Recent deals have strengthened the case for faster negotiations and clearer frameworks for businesses, officials said.
“India is negotiating multiple FTAs” at a time of challenges in global trade, Commerce Secretary Rajesh Agarwal told reporters this week. “I see positive progress on several of them next year.”
Despite new 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 United States hoped to conclude the first tranche of a bilateral trade deal by the fall, but that fell through as relations became strained over India’s relentless oil buying. discounted Russian crude oil. Washington says these purchases help finance Moscow’s war machine in the ongoing war with Ukraine.
In recent weeks, signs of cooling have been observed. Modi applauded Trump’s peace plan end the war between Russia and Ukraine and the two leaders recently spoke by telephone 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 an economic and technological partnership between India and the United States as well as opportunities to boost bilateral trade, India’s foreign ministry said in a statement.
New Zealand Minister for Trade and Investment 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.
European Commissioner for Trade and Economic Security Maros Sefcovic also met Goyal last week to review the progress made under the India-EU FTA and explore ways to resolve issues and move the negotiations forward.
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