Despite US tariffs, India eyes stronger export push with EFTA, UK and EU deals: sources

Despite the imposition of additional US tariffs, India remains in a strong position to grow its export footprint, sources told CNBC-TV18. New and upcoming trade agreements with key partners in Europe are expected to cushion the impact and open fresh opportunities.

India’s trade agreement with the European Free Trade Association (EFTA) nations will come into effect from October 1. Meanwhile, its free trade agreement with the United Kingdom is expected within a year, and negotiations with the European Union are progressing with an eye on closure by the end of 2025.

Together, the EFTA nations, the EU, and the UK represent an economic bloc of around $16 trillion, accounting for nearly one-third of global trade.

Access to these markets will allow Indian exporters to diversify beyond the United States and tap into new opportunities across Europe.

Also Read: US tariff move not linked to trade access; efforts on to pause levy, say sources

Sources pointed out that the Indian economy has weathered major challenges before, including nuclear-related sanctions and the severe disruptions caused by the COVID-19 pandemic and emerged resilient.

They added that India’s ongoing reform agenda remains firmly on track, strengthening the outlook for trade and investment.

“While the US tariffs have created immediate challenges for certain sectors, India’s strategic trade partnerships and structural reforms will help the country emerge stronger from this crisis,” one source said.