The negotiations for a bilateral trade deal with the United States and a free trade agreement with the European Union (EU) are progressing “really intensely” and should be concluded soon, finance minister Nirmala Sitharaman said Tuesday. Countering a US-led narrative that India is a “tariff king,” she said the government has brought down customs duty slabs to eight “including the zero rate” and that effective rates are much lower than the tariff rate, or the maximum possible tax on imports.

India has already signed free trade agreements with the United Arab Emirates, Australia, and the four-nation EFTA (European Free Trade Association) bloc, while negotiations with the UK have been completed, Sitharaman said at a trade conclave organised by the Exim Bank here.

The emphasis now is on concluding more free trade agreements, she added.

Trade Pacts with US, EU to be Concluded Soon: Sitharaman

India has deepened its participation in global value chains. Apple’s iPhone contract manufacturers have crossed the 20% domestic value addition (DVA) threshold across variants, the minister said.

Citing the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2025, she said India’s position has improved though the global FDI flows dropped 11%.
Export Focus
Indian exports grew at an annual rate of 6.3% between 2010 and 2023 when global exports grew at 4%, and the country’s share in global exports touched 3% in 2023 from 2.2% in 2010, as per the UNCTAD report. “Exporters are swimming against tides and succeeding,” Sitharaman said.The country’s total exports reached an all-time high of $825 billion in FY25, recording a 6% growth from previous year, despite global uncertainties, she noted.

“In the last few years, global growth and trade have suffered,” she said. “There was Russia-Ukraine war, then it was Israel-Gaza. Every year, we have had one or the other serious challenge to do with trade.”

India aims to achieve the export target of $2 trillion by 2030.

Speaking at the conclave, financial services secretary M Nagaraju said India continues to be a beacon of hope and growth amidst all the global headwinds.