VOI World/ Astha Pandey
India is intensifying efforts to reshape its global trade architecture, with Commerce and Industry Minister Piyush Goyal confirming that New Delhi is simultaneously negotiating free trade agreements (FTAs) with nearly 50 countries and blocs including the United States, the European Union and members of the Gulf region. The renewed diplomatic push comes amid a rapidly changing global trade environment, where tariff volatility and geopolitical tensions have disrupted long-standing supply chains.
India is prioritising economic partnerships with trusted nations to secure stable, predictable access to major markets. “We have all seen trade being weaponised. We have all seen the importance of having trusted partners around the world,” he noted, adding that India is currently in advanced or active negotiations with several groups, including the Gulf Cooperation Council (GCC). The bloc that comprises Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain has expressed fresh interest in formalising a trade pact with India.
For India- U.S. trade deal is on its way to get finalized with the first tranche of its bilateral trade agreement (BTA) with Washington by the end of December 2025. The deal aims to restore tariff parity after years of trade friction and retaliatory duty hikes including a steep 50 per cent import tariff imposed by the US on Indian goods since August 27. The proposed pact seeks to undo some of that volatility and create a predictable framework for both sides.
For India, tariff stability is essential. Exporters in engineering goods, textiles, pharmaceuticals, leather and selective agricultural categories have flagged inconsistent US duties as a key obstacle to growth. A reciprocal tariff arrangement would help them regain market competitiveness and could also draw in global supply-chain players seeking alternatives to China-centred manufacturing routes.
For the US, the BTA promises clearer trade terms and enhanced access to one of the world’s fastest-growing consumer markets. A senior Indian official said there is “growing excitement globally to expand trade relations with India,” suggesting momentum in Washington as well.
Analysts believe that while the immediate objective is tariff correction, the pact could eventually widen to include digital trade, clean-energy technology exchange and co-production frameworks. The emerging structure deliberately avoids politically sensitive flashpoints, adopting instead a phased, technocratic approach to de-escalating trade tensions.
India’s broader FTA strategy reflects the same urgency. As tariff regimes become unpredictable in major markets, New Delhi is using parallel trade talks to lock in long-term economic certainty, strengthen its manufacturing ecosystem and ensure exporters are shielded from sudden policy swings abroad.
If the India- U.S. pact is concluded, it could signal one of the most significant resets in the economic relations of both nations in recent years, to close a turbulent chapter of tariff disputes and to further reinforce India’s growing role in shaping resilient global supply networks.
