India Strengthens Trade Deals with US, EU, and Oman

India has been actively implementing and negotiating free trade agreements (FTAs) with several countries. Commerce and Industry Minister Piyush Goyal said India has completed trade pacts with Australia, the UAE, the UK, and the EFTA bloc. In addition, India is in talks with nations like the US, EU, Oman, Chile, Peru, and New Zealand to expand bilateral trade. These agreements aim to boost trade and investment opportunities and position India as a preferred global trade partner.

Active Talks with the United States

India’s official team is currently in Washington for trade discussions with US counterparts. The talks, running until October 17, focus on negotiating a Bilateral Trade Agreement (BTA). Leaders from both countries directed officials in February to pursue the agreement, with a goal to conclude the first phase by fall 2025. So far, five negotiation rounds have been completed, showing progress despite previous trade tensions.

Overcoming Trade Challenges

India and the US have faced challenges, including tariffs imposed by the previous US administration. These included a 50% tariff on Indian goods and additional duties on Russian crude oil imports. Indian officials have labeled these tariffs as “unfair and unreasonable.” There have also been concerns over US visa policies affecting Indian professionals. However, phone conversations between Prime Minister Narendra Modi and US President Donald Trump have renewed hope for a positive resolution.

Goals of the Trade Pact

The proposed BTA aims to significantly increase bilateral trade, targeting USD 500 billion by 2030 from the current USD 191 billion. The US has been India’s largest trading partner for four consecutive years. In 2024-25, bilateral trade reached USD 131.84 billion, with USD 86.5 billion in Indian exports. Trade with the US contributes to about 18% of India’s total goods exports and over 10% of its total merchandise trade.

Recent Trade Data

Recent data shows India’s exports to the US fell by 11.93% to USD 5.46 billion in September 2025, due to high US tariffs. Meanwhile, imports from the US rose by 11.78% to USD 3.98 billion. These figures highlight the importance of negotiating favorable trade terms to support Indian exporters and strengthen bilateral economic relations.

Expanding Trade Beyond the US

India is also exploring opportunities with other regions, including Brazil and South America. The government is looking to enhance preferential trade agreements to penetrate these markets more effectively. With multiple FTAs under discussion, India is positioning itself as a global hub for trade, supporting economic growth and development under the objectives of the country’s broader trade policy.

India’s ongoing trade negotiations and agreements show its commitment to expanding international commerce. By building stronger ties with developed nations, India aims to boost exports, attract investment, and secure a prominent place in global trade while benefiting domestic industries and the economy.