In a recent exclusive interview, Union Commerce and Industry Minister Piyush Goyal articulated India's ambition to emerge as a global superpower, firmly built on the principles of fair trade and self-reliance, signaling a distinct departure from allegiance to China-centric blocs. Goyal emphasized that India is prioritizing trade agreements with developed economies that complement its growth, while ensuring these partnerships respect India's sensitivities and protect its interests.
India's strategy involves actively pursuing Free Trade Agreements (FTAs) with various nations and regions. Goyal highlighted the recent "mother of all deals" with the European Union (EU), which aims to double India's exports to the EU within five years. This FTA, finalized after nearly two decades of negotiations, is one of the most ambitious trade agreements signed by India, encompassing goods, services, and investments. The EU has agreed to eliminate tariffs on 99.5% of Indian exports, with most duties falling to zero immediately. India, in turn, will phase out tariffs on 97.5% of EU exports, with some reductions phased over several years to protect sensitive sectors.
Goyal stressed that the EU deal extends beyond trade, with potential benefits for manufacturing and labor-intensive sectors. The agreement aims to boost sectors like textiles, apparel, leather goods, and gems and jewellery by eliminating tariffs, potentially shifting orders from countries like Bangladesh and Vietnam to India. It is expected to be implemented in 2026.
A key aspect of India's trade strategy is a calculated distance from blocs perceived to be dominated by China. This stance reflects a broader concern that such arrangements could undermine India's manufacturing sector and MSMEs, potentially turning India into an import-dependent nation. Instead, India is focusing on bilateral engagements with nations that share a commitment to fair trade practices.
India has signed 13 FTAs with countries and regions, including Japan, South Korea, ASEAN countries, SAARC, Mauritius, the UAE and Australia. It is also engaged in FTA negotiations with the UK and Canada, targeting sectors like services, digital trade and sustainable development. India's recent trade agreement with the European Free Trade Association (EFTA), including Iceland, Liechtenstein, Norway and Switzerland, is designed to boost trade and investment.
Meanwhile, trade negotiations between India and the U.S. have been ongoing since March 2025. The Economic Survey 2026 suggests a trade deal between the two countries might be reached this year, potentially reducing uncertainty on the external front. Goyal stated that remaining trade deadlocks between India and the U.S. may soon be resolved, describing the proposed agreement as a "positive, good deal".
India's approach emphasizes protecting its core interests while fostering international collaboration. This involves safeguarding sensitive sectors, promoting manufacturing and services, and encouraging innovation, research and development, startups, and logistics. By focusing on fair trade and strategic partnerships, India aims to achieve its development goals and solidify its position as a major global power.
