India Pursues Multiple FTAs Amid US Tariff Disputes

Commerce and Industry Minister Piyush Goyal announced a series of strategic trade developments, including the implementation of the India-United Kingdom Free Trade Agreement starting July 15. Goyal framed these efforts as part of a broader strategy under Prime Minister Narendra Modi to expand market access to developed nations, noting that India has signed nine historic FTAs to date.

Negotiations for a bilateral trade agreement with the United States remain stalled over tariff disputes. Although a framework agreement was finalized in February, Goyal stated the deal cannot be implemented until India secures a competitive tariff advantage over rivals like Vietnam. The impasse follows a Supreme Court of the United States ruling that struck down reciprocal tariffs established by President Donald Trump, leading to temporary duties. Despite this, U.S. Trade Representative Jamieson Greer visited New Delhi in late June for ministerial talks to finalize a first-phase deal by mid-July, ahead of the July 24 expiration of a temporary 10 percent U.S. tariff.

India is also expanding its reach in Europe and North America. Goyal announced that a free trade agreement with the European Union will be signed by December 2026 and effective by early 2027, providing duty-free access for roughly 93 percent of Indian shipments. Additionally, Canada has expressed interest in finalizing a separate trade agreement within the year following discussions at the G7 Summit in France.