India has accelerated its push to secure major free trade agreements (FTAs) with some of the world’s largest economies, including the United States and the European Union, as part of a broader strategy to strengthen exports, create new market access, and deepen global economic partnerships.
Union Commerce and Industry Minister Piyush Goyal confirmed that India is currently engaged in active FTA negotiations with the US, EU, Oman, New Zealand, Chile and Peru, while several more countries have expressed interest in entering trade discussions with India.
Goyal said India is now seen as a credible, stable, and fast-growing market, which has encouraged nations to explore deeper trade relations. He noted that India’s economic performance, large domestic market, and growing manufacturing capabilities have positioned the country as an attractive partner in global supply chains.
Focus on Export Growth and Job Creation
The potential FTAs are expected to significantly boost sectors such as textiles, pharmaceuticals, engineering goods, agriculture, and services. Government officials believe these trade agreements could help Indian manufacturers access high-value markets and improve competitiveness through smoother trade rules and reduced tariffs.
Industry bodies have welcomed the move, noting that better market access in Western and Indo-Pacific nations would support India’s export-led growth strategy and contribute to long-term employment generation.
India’s Global Trade Strategy Expands
Beyond the US and EU, India’s engagement with smaller yet strategically important economies such as Oman, New Zealand, Chile and Peru is seen as part of a multi-layered trade architecture. These agreements are expected to diversify India’s trade basket, reduce dependency on limited markets, and strengthen diplomatic ties alongside economic cooperation.
The government has already concluded FTAs with the UAE, Australia and Mauritius in recent years, all of which have shown positive early outcomes in terms of trade volumes and investment flows.
Aiming for Global Integration
According to officials, India’s goal is to integrate more deeply with global value chains at a time when multinational companies are diversifying operations and looking for reliable manufacturing hubs. As countries reassess supply chain vulnerabilities, India aims to position itself as a stable alternative to other major markets.
Goyal stressed that these trade negotiations are being approached with caution to ensure that domestic industries are protected while new opportunities are created. The government is working closely with industry groups to address concerns related to tariffs, standards, and compliance requirements.
