India Engaged in FTA Talks with US, EU, Oman, Chile and Others to Strengthen Global Trade Links

Mumbai, 7 October 2025: India is intensifying its efforts to expand international trade by negotiating Free Trade Agreements (FTAs) with key global economies, including the United States, European Union, Oman, Chile, and Peru, according to Commerce and Industry Minister Piyush Goyal. The move is part of New Delhi’s strategy to align more closely with developed markets and strengthen its position in global value chains.

India Targets Stronger Global Partnerships Amid Expanding Trade Outreach

During his two-day visit to Qatar, Goyal stated that India is “uniting itself with developed countries through these trade agreements.” He confirmed that negotiations are in progress with Oman, the EU, the US, Chile, Peru, New Zealand, and the Eurasian region, while several other nations have shown interest in engaging with India on trade matters.

The minister is leading a high-level business delegation to Doha to explore potential collaborations in bilateral trade and investment between India and Qatar. The discussions focus on increasing market access, reducing tariffs, and strengthening trade infrastructure across sectors such as energy, manufacturing, and technology.

India-US Trade Talks Gain Momentum After Tariff Hikes

India’s FTA negotiations with the United States have gained renewed urgency following Washington’s 25% reciprocal tariff and an additional 25% penalty on Indian exports linked to India’s continued crude oil imports from Russia, effectively doubling duties to 50%.

These developments underscore the significance of the proposed India-US Bilateral Trade Agreement (BTA), which aims to ease trade tensions and promote smoother market access for both nations. Goyal recently led high-level discussions in New York with United States Trade Representative (USTR) Jamieson Greer and US Ambassador-designate to India Sergio Gor, where both sides agreed to continue negotiations for an early and mutually beneficial conclusion.

Bilateral Trade Between India and the US Poised to Touch $500 Billion by 2030

The proposed India-US BTA seeks to more than double bilateral trade to USD 500 billion by 2030, up from USD 191 billion currently. So far, five rounds of negotiations have been completed, with the first tranche of the agreement expected to be finalised by October–November 2025.

In FY2024-25, the United States remained India’s largest trading partner for the fourth consecutive year, with total bilateral trade valued at USD 131.84 billion. Of this, exports stood at USD 86.5 billion, accounting for 18% of India’s total goods exports and 10.73% of overall merchandise trade.

This consistent growth underscores the increasing integration between both economies, particularly across sectors such as IT services, pharmaceuticals, renewable energy, and defence manufacturing.

India Diversifying Trade with the EU, Oman, and Chile to Reduce Market Dependency

Beyond the United States, India’s ongoing talks with the European Union, Oman, and Chile reflect a calculated move to diversify its export portfolio and reduce overreliance on a few large markets. The negotiations with the European Union, which began in 2022, have progressed on issues related to tariff reduction, sustainable trade practices, and services liberalisation.

Similarly, discussions with Oman aim to deepen cooperation in energy and petrochemicals, while talks with Chile and Peru focus on agriculture, mining, and digital trade. These emerging partnerships are expected to enhance India’s global supply chain integration and create new avenues for high-value exports.

Strengthening India’s Strategic Trade Position in a Shifting Global Economy

India’s proactive engagement in multiple FTAs highlights its long-term vision to position itself as a global manufacturing and export hub. With shifting global supply chains and rising geopolitical realignments, these trade agreements could play a crucial role in improving India’s trade competitiveness, particularly in sunrise sectors such as semiconductors, electric vehicles, green energy, and advanced manufacturing.

Moreover, stronger partnerships with economies like the US and EU can help India access advanced technologies and attract foreign investments, while agreements with Oman and Chile could strengthen its presence in the Middle East and Latin America.

About India’s Trade Framework and Vision

India’s current trade policy aims to balance economic growth with strategic autonomy, focusing on export diversification, supply chain resilience, and sustainable trade practices. The country’s trade outreach is managed under the Ministry of Commerce and Industry, headquartered in New Delhi, which oversees all bilateral and multilateral negotiations related to trade, investment, and industrial policy.

India’s ongoing FTA negotiations with the US, EU, Oman, Chile, and others mark a decisive step towards integrating more deeply with global markets. As discussions progress, the country’s trade landscape is likely to become more dynamic, strengthening India’s access to developed economies while enhancing its global competitiveness across high-growth sectors.

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