September 11, 2025

India is stirring the pot of global trade with big moves on multiple fronts! Commerce and Industry Minister Piyush Goyal announced on Wednesday that India is in "active dialogue" with the United States to secure a free trade agreement. But wait, there’s more! Talks are rising in the capital with the European Union, and India is also chatting with New Zealand for a trade deal, said Goyal during a FICCI event. The trade kitchen is heating fast. India has already spiced things up with trade pacts signed with Mauritius, the EFTA bloc, the UK, UAE, and Australia. Goyal added, "We will soon finalise second tranche of trade agreement with Australia." And guess what? A new trade pact with Oman is also expected soon! India and Australia are no strangers to trade deals. They signed an interim agreement in 2022 and are now cooking up a bigger, tastier, all-encompassing trade pact to cover more ground. However, the US side has thrown a chili of sorts by imposing a 50 per cent import duty on Indian goods starting August 27. This affects exports in labor-heavy sectors like shrimp, textiles, leather, and footwear. Despite this hurdle, India and the US have held five rounds of negotiations on a bilateral trade deal since March. Though the sixth round got delayed when the US team postponed their India visit, sources say talks are still on track. Both countries aim to wrap up the first phase of their trade agreement by fall of 2025. Prime Minister Narendra Modi echoed the sentiment, calling India and the US "natural partners." Responding to US President Donald Trump’s comments on easing "trade barriers," Modi said on social media, "India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership." The friendly trade banter comes after Trump doubled tariffs on Indian goods, straining relations briefly. Now, both leaders look forward to chatting soon, aiming to seal the deal and bring back the sweet taste of strong trade ties. Why all this fuss? Because the US is India’s largest trading partner, with a whopping USD 191 billion in bilateral trade of goods and services. Moreover, America is a massive investor in India, bringing USD 76.26 billion Foreign Direct Investment (FDI) from April 2000 to June 2025 — about 10 per cent of all FDI India has received in this period. So, India’s trade story is like a spicy masala dish – a mix of challenges and exciting opportunities. With deals simmering with the US, Australia, New Zealand, and the EU, India's global trade table promises to serve some tasty treats soon!

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Tags: India-us trade, Piyush goyal, Free trade agreement, India-australia trade pact, Tariffs, Fdi,