India Targets $500 Billion Trade Growth with New Global Agreements

India’s Commerce and Industry Minister Piyush Goyal revealed that the nation is actively pursuing Free Trade Agreements (FTAs) with multiple countries, including the United States, the European Union, New Zealand, Oman, Peru, and Chile, signaling a robust strategy to enhance India’s global trade stature. Speaking at the UP International Trade Show in Greater Noida, Goyal also noted keen interest from Qatar and Bahrain in forging trade pacts. Additionally, India signed Terms of Reference in August 2025 with the Eurasian Economic Union (EAEU)—comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia—to initiate FTA talks, reinforcing India’s commitment to diversifying its trade partnerships amidst global economic shifts.

The spotlight is on the ongoing U.S.-India Bilateral Trade Agreement (BTA) negotiations, which aim to more than double bilateral trade from $191 billion to $500 billion by 2030. Following five rounds of talks since February 2025, Goyal’s recent New York delegation engaged with U.S. Trade Representative Jamieson Greer and Ambassador-designate Sergio Gor to push for an early conclusion by October-November 2025. These discussions are critical, especially after the U.S. imposed a 50% additional import duty on Indian goods—comprising a 25% reciprocal tariff and a 25% penalty—due to India’s purchase of Russian crude oil. Despite these challenges, the U.S. remains India’s largest trading partner for the fourth consecutive year, with $131.84 billion in bilateral trade in 2024-25, accounting for 18% of India’s goods exports.

India’s trade ambitions extend beyond the U.S., with significant progress in other regions. The Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA)—Iceland, Liechtenstein, Norway, and Switzerland—signed on March 10, 2024, will take effect on October 1, 2025. This landmark deal secures a $100 billion investment commitment over 15 years in exchange for reduced duties on luxury goods like Swiss watches, chocolates, and diamonds, promising job creation and technology transfers. Concurrently, FTA talks with the EU, New Zealand, Oman, Peru, and Chile are advancing, aiming to open new markets for Indian textiles, pharmaceuticals, and electronics while supporting micro, small, and medium enterprises (MSMEs).

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The EAEU agreement further diversifies India’s trade portfolio, targeting a $6.5 trillion market with $69 billion in bilateral trade in 2024, reflecting a 7% year-on-year growth. This pact focuses on reducing dollar dependency through rupee-ruble mechanisms and leveraging connectivity corridors like the International North-South Transport Corridor. These efforts counterbalance U.S. tariff pressures and enhance India’s strategic autonomy in global trade, fostering resilience against geopolitical uncertainties.

Goyal emphasized that these agreements underscore the developed world’s growing confidence in India’s economic potential. By promoting “Made in India” goods, he urged stakeholders to bolster domestic manufacturing, aligning with India’s vision of inclusive growth. As negotiations progress, India is poised to strengthen its position as a global trade powerhouse, driving innovation, sustainability, and prosperity through strategic partnerships.

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