Negotiators in New Delhi are in advanced discussions with the European Union, New Zealand and Chile, while an agreement with Oman is scheduled to be signed this week, marking the first deal under a renewed push to broaden market access. Officials familiar with the talks said the acceleration reflects concern that protectionist measures in major economies could erode price competitiveness for exporters in sectors ranging from engineering goods to textiles and chemicals.
The effort comes as Washington has expanded tariff coverage on selected industrial and consumer products, creating pressure for trade-dependent economies to find alternative destinations. India’s export growth has slowed from earlier peaks, and officials have argued that preferential trade arrangements are essential to stabilise shipments and attract foreign investment into manufacturing and services.
Within government circles, the initiative is being described as a strategic recalibration rather than a short-term response. The move to broaden trade partners is intended to give exporters a wider base, lower duties in key markets and lock in rules on services, digital trade and supply chains that are increasingly shaping global commerce.
Talks with the European Union have gained momentum after years of intermittent negotiations. The proposed agreement is expected to be comprehensive, covering goods, services, investment protection, sustainability standards and intellectual property. Differences remain over tariffs on automobiles, wines and spirits, as well as regulatory standards and labour provisions, but negotiators say both sides are under pressure to close gaps as businesses seek predictability.
Engagements with New Zealand and Chile are more narrowly focused but are seen as stepping stones into the wider Asia-Pacific and Latin American regions. New Zealand offers access to a high-income market with strong demand for services and niche manufactured goods, while Chile provides a gateway to South America with existing trade links across the Pacific. Officials say these agreements are likely to involve phased tariff reductions and cooperation on standards to ease entry for exporters.
The Oman pact is significant for strategic as well as commercial reasons. The Gulf state serves as a logistics hub linking South Asia, the Middle East and Africa, and the agreement is expected to ease movement of goods, promote investment and support collaboration in energy, minerals and green technologies. It also signals an intent to deepen economic ties with West Asia at a time when energy security and supply-chain resilience are high priorities.
Trade economists note that the renewed push reflects lessons from earlier agreements, some of which were criticised for widening trade deficits. Authorities have since tightened internal review processes, seeking safeguards for sensitive sectors while pressing for better access for pharmaceuticals, information technology services, engineering products and processed foods. There is also greater emphasis on enforceable provisions and dispute-settlement mechanisms to ensure commitments translate into market access.
Industry groups have broadly welcomed the acceleration, arguing that diversification is essential as traditional markets become more volatile. Exporters of garments and leather goods see opportunities in Europe and Latin America to offset demand swings elsewhere, while technology and professional services firms are pushing for liberal visa regimes and recognition of qualifications. At the same time, domestic manufacturers have urged negotiators to ensure adequate adjustment periods to cope with increased competition.
The broader strategy aligns with ongoing efforts to position the country as an alternative manufacturing base amid shifts in global supply chains. Preferential trade deals can complement production-linked incentive schemes by guaranteeing access to overseas markets, making investment decisions more viable. Analysts caution, however, that agreements alone will not be sufficient without parallel reforms in logistics, customs procedures and regulatory consistency.