Nations, such as India, are in discussions regarding trade agreements with multiple countries, including the United States, as confirmed by Piyush Goyal.
In the global trade landscape, India continues to make significant strides, with the country being recognised as one of the fastest growing large economies by Commerce Minister Piyush Goyal. This recognition comes as India has signed 13 Free Trade Agreements (FTAs) with its trading partners, including the UAE, the UK, Australia, and EFTA nations.
The recent trade deals aim to boost manufacturing and reduce trade dependencies on China. For instance, India signed FTAs with the UAE in February 2022, Australia in April 2022, and EFTA nations led by Switzerland in March 2024. The UK was added to this list in May 2025.
However, trade relations with the US are currently strained. The US has imposed 25% reciprocal tariffs on Indian goods starting August 7, 2025, with additional tariffs expected later in the month. India has maintained firm "red lines" in negotiations and continues to seek resolution through dialogue, emphasizing constructive trade relations while rejecting one-sided punitive measures.
Regarding ongoing negotiations, India is in discussions with the European Union, Australia, Chile, Peru, and New Zealand. While the EU does not currently have a comprehensive FTA with India, a tariff-focused agreement has been signed with EFTA nations. Negotiations with the EU are ongoing, but no full FTA has been finalized as of August 2025.
Intriguingly, no recent trade pact or agreement with Oman, Chile, Peru, or New Zealand has been reported. India is actively pursuing trade agreements with countries like the UK and continues negotiations elsewhere, but the US remains a challenging partner due to tariffs and diplomatic tensions.
In summary, here's a snapshot of India's current trade status with the listed countries as of August 2025:
| Country | Current Status (August 2025) | |-------------------|---------------------------------------------------------------------------| | United States | Trade talks strained; US imposes 25% reciprocal tariffs on India; ongoing dialogue but India keeps firm red lines[2][3][4] | | European Union | No FTA; but tariff-focused agreement signed with EFTA (non-EU) countries including Switzerland (March 2024)[1] | | Oman | No recent trade pact or agreement reported[1] | | Chile | No recent trade pact or agreement reported[1] | | Peru | No recent trade pact or agreement reported[1] | | New Zealand | No recent trade pact or agreement reported[1] |
As India progresses towards 'Make in India' with self-confidence, international agencies view it as a bright spot in the world economy, with India contributing 16% to the global growth. The minister expressed confidence in achieving the goals of Viksit Bharat and emphasized that India is constantly working towards protecting and promoting its farmers. The country's macroeconomic fundamentals are strong, and the minister stated that India is discussing a mutually beneficial trade deal with the US.
- In light of the ongoing trade talks with various nations, the Indian government is also focusing on discussions with the United States, aiming to navigate the current strained relationship and work towards a mutually beneficial trade deal.
- Despite the challenges with the US, international finance and business communities recognize India as a significant contributor to the world economy, with its strong macroeconomic fundamentals and efforts towards self-sufficiency through programs like Make in India and protecting its farmers.
