India is aggressively pursuing trade deals worldwide to open new markets for exporters and mitigate the impact of steep US tariffs, which have strained Washington-New Delhi relations since August 2025.
US President Donald Trump’s 50% tariffs, aimed at curbing India’s Russian oil imports, have threatened job losses and slowed India’s ambitions to become a manufacturing and export powerhouse.
In response, India has accelerated a diversification strategy, signing or operationalising four major trade agreements last year, including a landmark pact with the UK, and now pursuing deals with the European Union (EU), Eurasian Economic Union, Mexico, Chile and Mercosur.
“If successful, India would have trade arrangements with almost every major economy,” said Ajay Srivastava, of the Global Trade Research Initiative.
The push is also expected to bolster labour-intensive sectors hurt by tariffs. The UK trade deal could double garment exports over the next three years, while a potential EU agreement is projected to be the “largest deal of this kind anywhere in the world”, according to European Commission President Ursula von der Leyen.
Smaller deals matter too. A December FTA with Oman provides a gateway to the Middle East and Africa, while India’s agreement with New Zealand secured US$20 billion in foreign investment, improved visa access and demonstrated flexibility in negotiations.
With key visits from EU and German leaders planned this month, India’s trade strategy is firmly focused on expanding global partnerships while keeping Washington on the radar.
Related