India is intensifying efforts to expand and diversify its trade partnerships as U.S. tariffs of up to 50% disrupt key export sectors and stall bilateral negotiations with Washington. New Delhi is actively pursuing multiple trade agreements across regions, from Eurasia to Africa and the Gulf.
Expanding Global Trade Network
India is currently working on 8–10 trade agreements, including:
- An early harvest deal with the Eurasian Economic Union (EAEU).
- Ongoing talks with the European Union (EU), with the 13th round of FTA negotiations scheduled in New Delhi next week. Officials hope to conclude the pact by year-end.
- A potential agreement with the South African Customs Union (SACU), which includes South Africa, Namibia, Botswana, Lesotho, and Eswatini.
- The second phase of the FTA with Australia.
- Fresh accords with Qatar and Saudi Arabia.
India is also reviewing existing agreements such as the Asean-India Trade in Goods Agreement (AITIGA) to update terms in line with current challenges.
Officials noted that both the EAEU (dominated by Russia) and SACU (led by South Africa) pose unique challenges, as their agreements do not cover services. India may pursue separate service arrangements with dominant member states to address this gap.
An FTA with Oman is expected to be finalized soon, coinciding with 70 years of diplomatic ties. Trade between the two nations reached $4.42 billion in exports and $4.52 billion in imports in FY25. Petroleum products and urea account for over 70% of India’s imports from Oman, while exports range from light oils and machinery to rice, spices, and tea.
Investment flows have also been robust, with joint ventures across energy, chemicals, and industrial sectors.
Exploring New Partners
Beyond the Gulf and Eurasia, India is negotiating or exploring trade agreements with Sri Lanka, Peru, Chile, and New Zealand. Officials emphasized that finding alternative markets has become essential to cushion exporters from the impact of U.S. tariffs.
Outlook
With traditional trade routes under pressure, India is accelerating its global outreach to secure new markets, strengthen MSME participation, and diversify exports. The government’s strategy reflects both urgency in responding to U.S. trade actions and a long-term pivot toward a broader, more resilient global trade framework.
