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India India has stepped up efforts to finalize several free trade agreements in the next few months to mitigate the impact of US import tariffs and broaden export destinations amid rising global trade uncertainties.
New Delhi The EU is in advanced talks with New Zealand and Chile and is set to sign its first agreement this week under renewed pressure omanAccording to Indian officials who spoke on condition of anonymity because the details are not yet public.
Prime Minister Narendra Modi Expected to take place in the capital of Oman muscat That’s when the India-Oman free trade agreement or FTA will be signed on Thursday, officials said.
Officials said the deal aims to boost bilateral trade and boost India’s exports of engineering goods, textiles, pharmaceuticals and agricultural products.
FTA is a central pillar of India’s economic strategy as it seeks deeper integration into global supply chains, strong export growth and sustained job creation. By reducing tariffs and setting predictable trade rules, the agreement will help Indian businesses remain competitive and expand access to new markets.
With global trade increasingly shaped by tariff disputes and geopolitical tensions, India is betting that a broader network of trade agreements will help cushion external shocks and meet its export ambitions.
The talks have gained momentum as Indian exporters face pressure from higher US import duties of 50%, which came into effect in August. While the two countries are negotiating a bilateral trade agreement, the tariffs have hit sectors such as textiles, auto components, metals and labor-intensive manufacturing.
“India is clearly using FTAs as a strategic tool to diversify export markets and mitigate the impact of burdensome and uncertain US tariffs,” trade analyst Ajay Srivastava said.
Srivastava said that overall, India has 15 FTAs covering 26 countries and six preferential trade agreements with another 26 countries, while negotiations are underway with over 50 other partners.
He said, once the ongoing talks are over, India will have trade agreements with almost all major global economies except China.
India has signed comprehensive economic cooperation and trade agreements with the United Arab Emirates and Australia in recent years, leading to increased bilateral trade with both countries. In May, Britain and India announced that they had agreed to a tough FTA that would reduce tariffs on products including Scotch whiskey and English gin sent to India, and on Indian food and spices sent to Britain.
Officials said the recent agreements have strengthened the case for faster negotiations and a clear framework for trade.
“India is negotiating a number of FTAs at a time of challenges in global trade,” Trade Secretary Rajesh Aggarwal told reporters this week. “I see positive progress on many of these over the next year.”
Despite the new momentum, challenges remain as Indian negotiators face pressure to protect small farmers and domestic industries, while trading partners push for greater market access.
India and the US had hoped to get the first tranche of a bilateral trade agreement by autumn, but this could not happen as relations have come under strain following India’s uninterrupted purchases of Russian crude at concessional rates. Washington says the purchases help finance Moscow’s war machine in its ongoing war with Ukraine.
There have been signs of softening in temperatures in recent weeks. Modi praised Trump’s peace plan to end the Russia-Ukraine war and the two leaders recently discussed mutual interests, including trade, over phone.
A team of US negotiators led by Deputy Trade Representative Rick Switzer visited New Delhi last week and held talks with Indian officials.
Switzer discussed the India-US economic and technological partnership as well as opportunities to boost two-way trade, India’s Ministry of External Affairs said in a statement.
New Zealand’s Trade and Investment Minister Todd McLay met his Indian counterpart Piyush Goyal last week. Goyal said at the X, they discussed key aspects of the FTA and explored ways to take the negotiations forward for mutual benefit.
EU Trade and Economic Security Commissioner Maros Sefcovic also met Goyal last week to review progress on the India-EU FTA and explore ways to resolve issues and take the negotiations forward.