India in talks for FTAs with US, EU and others, says Goyal

India is negotiating free trade agreements with the US, EU, and several other countries, Commerce Minister Piyush Goyal said. Talks with the US aim to double trade to $500 billion by 2030, while the India-EFTA pact takes effect on October 1

New Delhi: India is negotiating free trade agreements (FTAs) with a number of countries, including the US, New Zealand, Oman, Peru, Chile, and the European Union, Commerce and Industry Minister Piyush Goyal said on Monday.

He said that Qatar and Bahrain, too, are keen to negotiate trade pacts with India. In August, India and the Eurasian Economic Union (EAEU), comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia, signed Terms of Reference (ToR) to launch negotiations on an FTA, he said.

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“Talks are going with the US (for a trade agreement). Talks are also underway with the EU, New Zealand, Oman, Peru, and Chile,” he said at UP International Trade Show, Greater Noida. Last week, the minister led an official delegation to New York for trade talks. After that meeting, India and the US decided to continue negotiations for the early conclusion of a mutually beneficial bilateral trade agreement.

Both sides held constructive meetings on various aspects of the trade deal. During the visit, the Minister held meetings with United States Trade Representative (USTR) Jamieson Greer and US Ambassador-designate to India Sergio Gor.

These deliberations were important as they took place after the US imposed a 25 per cent reciprocal tariff and an additional 25 per cent penalty on Indian goods entering the American market for purchasing Russian crude oil. At present, a total of 50 per cent additional import duty is imposed on Indian goods.

In February this year, leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement (BTA). It was planned to conclude the first tranche of the pact by the fall (October-November) of 2025. So far, five rounds of negotiations have been held. The pact is aimed at more than doubling the bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.

The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion exports). The US accounts for about 18 per cent of India’s total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country’s total merchandise trade.

Goyal also informed that the Trade and Economic Partnership Agreement (TEPA) between India and the four European nations bloc, EFTA (European Free Trade Association), will come into force from October 1. It was signed on March 10, 2024.

Under the pact, India has received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products, such as Swiss watches, chocolates, and cut and polished diamonds, at lower or zero duties.

“This pact will benefit Indian traders, he said, adding these agreements reflect increasing interest of the developed world towards India. Further, the commerce minister called for buying Made in India goods to promote domestic manufacturing.