The government on Friday claimed that India’s role and share in global trade are poised for a major leap in line with the country’s ambition and journey towards Viksit Bharat.
Over the past decades, India has significantly deepened its integration with global markets, supported by strong export performance, resilient services trade and an expanding network of trade partnerships, reflecting growing competitiveness and adaptability to changing global demand dynamics.
An official press note said the country has not only increased its share in global trade but also diversified its trading partnerships. According to UNCTAD’s Trade and Development Report 2025, India ranks third among Global South economies in terms of the diversity index of trade partnerships.
With an index score higher than that of all countries in the Global North, India’s trade ecosystem underscores resilience in the face of tariff uncertainties and emerging global challenges.
An expanding network of FTAs strengthens India’s trade strategy by ensuring reliable market access. These agreements help reinforce the country’s trajectory towards a stronger global trade presence by supporting export-oriented firms, expanding production and integrating more deeply into global value chains.
Bilateral and multilateral Free Trade Agreements (FTAs) constitute a key pillar of India’s trade strategy, designed to expand trade and investment through enhanced market access, greater trade in services, reduction of non-tariff barriers, promotion of investment, and strengthened economic and technical cooperation.
By leveraging trade complementarities, these agreements boost export potential, create new opportunities for industry and farmers, and generate employment across sectors.
Hailed as the “Mother of All Deals,” the conclusion of negotiations between India and the European Union Free Trade Agreement (FTA) in January 2026, marks a significant milestone in one of India’s most strategic economic partnerships. Structured as a modern, rules-based trade framework, the agreement aims to address contemporary global economic challenges while enabling deeper market integration between the two major economies.
Increased Market Access: The agreement provides preferential access across 97% of EU tariff lines, covering 99.5% of trade value, while preserving policy flexibility for sensitive sectors and supporting India’s developmental priorities.
Immediate Duty Elimination: 70.4% of tariff lines, accounting for 90.7% of India’s exports, will see immediate duty elimination, benefiting labour-intensive sectors such as textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery, and selected marine products.
Phased Duty Elimination and Preferential Access: Zero duty over three to five years will apply to 20.3% of tariff lines covering 2.9% of exports, while 6.1% of tariff lines covering 6% of exports will receive preferential access through tariff reductions or tariff-rate quotas for products including processed foods, preserved vegetables, bakery items, cars, steel, and certain shrimp and prawn products.
Boost to Labour-intensive Industries: Labour-intensive industries such as textiles and apparel, marine products, leather and footwear, chemicals, plastics and rubber, sports goods, toys, gems, and jewellery, accounting for exports exceeding Rs 2.87 lakh crore ($ 33 billion), will gain competitiveness, deeper integration into European value chains, and generate employment as duties move to zero.
Market Access in Services: The EU has extended commitments across 144 subsectors, including IT/ITeS, professional, education, and business services, providing Indian service providers a stable environment to expand exports and support innovation, productivity and business growth across both economies.