Mumbai, 30th July 2025 — As part of its broader economic strategy to solidify its global position and secure diversified market access, India is simultaneously negotiating, finalizing, or implementing multiple bilateral trade agreements with strategic partners across the globe. These multi-pronged efforts aim to boost exports, attract investment, reduce tariff barriers, and enhance the competitiveness of Indian industries.

United States: Strategic Patience Amid Tariff Pressures

India’s highly anticipated trade pact with the United States is facing delays, with talks now expected to extend into the third quarter of 2025. While both nations have made progress on key chapters — such as intellectual property, digital trade, and market access for agricultural products — no final agreement has been reached ahead of the informal August 1 deadline.

U.S. trade officials are set to visit India in late August, with a fresh draft expected to emerge by September or October. In the interim, India is preparing for possible retaliatory tariffs of 20–25% on certain exports, should temporary waivers expire.

“This deal is about more than just tariffs — it’s about long-term alignment on digital regulation, AI governance, and secure supply chains,” a senior Indian trade negotiator said.

United Kingdom: 'Golden Standard' FTA Sets New Template

India and the United Kingdom formally launched their long-awaited Free Trade Agreement (FTA) earlier this month, lowering tariffs on over 5,000 product lines. Under the deal, tariffs on British luxury cars and high-end machinery will reduce to 10% over 15 years, while Indian textiles, processed foods, and IT services will gain broader access to the UK market.

This deal is being positioned as a “template for future trade engagements with developed economies”, balancing domestic protection with targeted liberalization.

European Union: Final Hurdles Remain

The India–EU FTA, under negotiation for over a decade, has entered its final phase. Key sticking points remain around data privacy, carbon border taxes, and intellectual property rights, particularly concerning pharmaceuticals and geographical indicators (GIs).

EU diplomats have signaled optimism, with Brussels targeting early 2026 for ratification, provided both sides align on regulatory and sustainability standards.

Australia: Implementation Phase Underway

India’s Economic Cooperation and Trade Agreement (ECTA) with Australia, signed in late 2023, is now fully operational. Tariffs on coal, wine, wool, and almonds from Australia have been lowered, while India has expanded market access for engineering goods, textiles, and pharmaceuticals.

Officials are now working on a second-phase Comprehensive Economic Cooperation Agreement (CECA) to cover services, investments, and e-commerce.

UAE & Gulf: Fast-Track Agreements Fueling Energy-Services Exchange

India’s Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates has triggered a 20% surge in bilateral trade, with special focus on petroleum, gold, electronics, and fintech services. Expansion talks are underway to include Bahrain, Oman, and Saudi Arabia, aiming to create a unified trade corridor across the Gulf Cooperation Council (GCC).

Canada: On Hold Amid Diplomatic Frictions

Negotiations with Canada remain frozen due to geopolitical tensions and domestic sensitivities in both countries. Despite mutual interest in cooperation on green energy and critical minerals, no diplomatic breakthrough is expected in the near term.

ASEAN (Association of Southeast Asian Nations): Review and Expansion

India is reviewing its FTA with ASEAN nations, with particular focus on correcting trade imbalances and enhancing rules of origin compliance. The goal is to update the decade-old agreement to better reflect India’s interests in pharmaceuticals, fintech, and digital goods.

In parallel, India has joined regional dialogues with Indonesia, Thailand, and Vietnam to explore bilateral enhancements alongside broader ASEAN frameworks.

Africa: Preferential Trade Push in East and West Africa

India is strengthening trade ties with Kenya, Nigeria, and South Africa, working on preferential market access for automobiles, generic drugs, solar equipment, and agricultural machinery. A proposed India–Africa Trade Corridor is under review to facilitate seamless logistics and customs harmonization across the continent.

Latin America: Under-the-Radar Expansion

India is in exploratory talks with Brazil, Argentina, and Chile, focusing on lithium, agricultural products, and software services. Bilateral trade is modest but growing, driven by India's increasing interest in critical minerals and food security.

India’s Broader Trade Doctrine

India’s approach to global trade is shifting from defensive protectionism to strategic engagement, emphasizing:

• Reciprocal access to both goods and services markets.

• Tariff rationalization with conditions to protect key domestic sectors.

• Geoeconomic alignment with reliable partners across the Indo-Pacific and beyond.

• Digital trade and data localization safeguards.

Commerce Minister Piyush Goyal recently emphasized,

“India’s trade agreements are no longer just about goods; they are about services, standards, sustainability, and sovereignty.”

Outlook: Balancing Diplomacy and Domestic Priorities

As India enters a critical decade of growth, these multi-track trade efforts underscore its ambitions to become a global manufacturing and services hub, attract foreign investment, and secure its position in an increasingly fragmented world economy.

While challenges remain—ranging from protectionist pushback to global macro volatility—India’s active trade diplomacy suggests a long-term pivot toward open yet calibrated global integration.