Indian Economy News

India’s Trade Partnerships Powering Global Integration and Growth

India's global trading presence is growing rapidly, thanks to the diversification of trade relationships and the signing of Free Trade Agreements (FTAs) that help sustain and enhance export performance. As per the UNCTAD Trade and Development Report 2025, India ranks 3rd among the economies of the Global South in terms of trade relationship diversity, reflecting the country's strength and flexibility amid dynamic international changes. During FY26, India signed FTAs with the United Kingdom, Oman, and New Zealand and initiated negotiations with the Gulf Cooperation Council (GCC), Israel, ASEAN, Mexico, and Canada, expanding its global economic influence. The most notable achievement is the signing of the India-European Union Free Trade Agreement in January 2026, termed the ‘Mother of All Deals’, which provides preferential tariff access to 97% of the EU tariff lines and immediate duty-free access on major export categories. Sectors like textiles, leather, gems & jewellery, and marine products, which are labour-intensive and have export values of over Rs. 2.87 lakh crore (US$ 33 billion), are expected to greatly benefit from this enhanced market access.

Outside the European region, the Comprehensive Economic Partnership Agreement with Oman provides new opportunities for the agricultural, engineering, pharmaceutical, and automobile sectors through zero-duty access to over 98% of the Omani tariff lines, thereby facilitating job creation and MSME development. The India-New Zealand FTA provides duty-free access to all tariff lines, while the trade agreement with the United Kingdom improves market access and mobility. Along with other export support policies, these agreements help to sustain the strategy of responsible trade growth by leveraging the benefits of preferential market access.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.