In a strategic move to mitigate the impact of escalating U.S. import tariffs and navigate mounting global trade volatilities, India has intensified efforts to conclude multiple free trade agreements within coming months. This accelerated diplomatic push aims to diversify export markets and reinforce the nation’s position within international supply chains.
Government officials, speaking anonymously due to the sensitive nature of ongoing negotiations, revealed that New Delhi is in advanced discussions with the European Union, New Zealand, and Chile. The first tangible outcome of this renewed initiative will materialize this Thursday with the anticipated signing of a comprehensive FTA with Oman. Prime Minister Narendra Modi is scheduled to be present in Muscat for the ceremonial signing event.
The India-Oman pact specifically targets enhanced bilateral trade flows, with particular focus on boosting Indian exports across several key sectors including engineering goods, textiles, pharmaceuticals, and agricultural products. This agreement represents a critical component of India’s broader economic strategy seeking deeper global supply chain integration, sustained export growth, and substantial job creation.
Trade analyst Ajay Srivastava notes that India is strategically deploying FTAs as instruments to counterbalance the disruptive effects of steep and unpredictable U.S. tariffs, which reached 50% in August. These tariffs have particularly pressured Indian exporters in textiles, auto components, metals, and labor-intensive manufacturing sectors.
India’s existing trade architecture already encompasses 15 FTAs covering 26 nations plus six preferential agreements with another 26 countries. Current negotiations involve over 50 additional partners. Once finalized, this network will essentially connect India with virtually all major global economies except China.
Recent successes include comprehensive agreements with the UAE and Australia that have demonstrably boosted bilateral trade volumes. Additionally, May witnessed a hard-negotiated FTA with Britain that will significantly reduce tariffs on products ranging from Scotch whisky to Indian spices.
Despite this momentum, challenges persist as Indian negotiators must balance protecting domestic industries and small farmers against trading partners’ demands for greater market access. The anticipated trade agreement with the United States has encountered delays amid strained relations following India’s continued purchases of discounted Russian crude oil.
Recent diplomatic engagements, however, suggest improving relations. Prime Minister Modi recently endorsed former President Trump’s peace proposal for the Russia-Ukraine conflict, and the two leaders have conducted telephone discussions addressing mutual interests including trade. These developments were followed by last week’s visit of U.S. negotiators led by Deputy Trade Representative Rick Switzer to New Delhi.
Parallel negotiations continue with other partners: New Zealand’s Trade Minister Todd McClay recently met Indian counterpart Piyush Goyal to advance FTA discussions, while EU Commissioner Maros Sefcovic similarly engaged with Goyal to resolve outstanding issues in the India-EU trade negotiations.