Prime Minister Narendra Modi highlights India’s comprehensive trade strategy as the country actively negotiates free trade pacts with nearly 40 nations, aiming to Boost exports, attract investment, and foster growth amid signs of early success.
Prime Minister Narendra Modi used his Independence Day address on Friday to cast India’s trade policy as a central part of its economic strategy, saying the country is working on free trade agreements with about 40 countries. His remarks come as New Delhi seeks to widen market access for Indian goods and services, while also using trade pacts to draw in investment and support growth. According to Euronews, India and the European Union concluded a landmark free trade agreement in January, a deal described as the largest bilateral trade pact for both sides.
Free trade agreements, or FTAs, are deals that reduce or remove tariffs and other barriers to commerce. In practice, that can make Indian exports cheaper and more competitive abroad, while also allowing foreign goods to enter India at lower cost. The result, in theory, is greater trade volumes, stronger demand for domestic producers and, over time, more jobs and investment.
India has already signed a series of pacts with partners including the UAE, Australia, Switzerland, Norway, Iceland, Liechtenstein, the UK, Oman and New Zealand, and talks with other major economies are still under way. The Economic Times reported that Modi has called the India-EU accord the “mother of all deals” and a blueprint for shared prosperity, while Times of India said the pact could open EU markets worth Rs 6.4 lakh crore to Indian exporters. Separately, reports on the India-UK agreement said it would lower tariffs on 99% of Indian exports, and coverage of the New Zealand deal said the pact is intended to create new opportunities for farmers, small businesses and startups.
There are early signs that the strategy is feeding through to trade data. Government figures cited in the Hindi-language report said exports to several FTA partners rose sharply in the April-June quarter, including Singapore, Sri Lanka, ASEAN members, Malaysia, Australia, Britain, South Korea, Japan, Oman and Nepal. While those gains cannot be attributed to FTAs alone, they suggest India is already benefiting from deeper trade ties as it pushes to lock in more agreements with large markets in Europe and North America.
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