In a diplomatic and economic push aimed at de-risking its export portfolio and securing critical minerals, India is fast-tracking trade negotiations with the European Union (EU) and the United States (US), after recent engagements with Chile and New Zealand. This multi-pronged approach comes amid increasing geopolitical pressure from Washington for partners to align with its trade policies.
India’s limited team of trade negotiators has been shifting focus from Latin America to Europe and now the US, as the government works to diversify the export basket and strengthen the economy through strategic global partnerships. Talks are also focused on ensuring access to critical minerals and boosting sectors such as digital services and MSME collaboration.
Last week, India and Chile signed a terms of reference document to upgrade their existing
Preferential Trade Agreement (PTA) into a full-fledged Comprehensive Economic Partnership Agreement (CEPA). The broader CEPA framework will include cooperation on digital services , investment, micro, small and medium enterprises (MSMEs), and critically, access to Chile’s vast reserves of lithium and other key minerals. Chile is the world’s second-largest producer of lithium, a crucial input for electric vehicle batteries and renewable energy storage.
In parallel, New Delhi concluded its first round of CEPA negotiations with New Zealand, with both governments expressing intent to fast-track the agreement. Officials from both sides are reportedly keen to wrap up the deal within months.
The trade deal with the United Kingdom, announced last week, has added momentum to the long-pending EU-India Free Trade Agreement (FTA), which has been under negotiation for nearly two decades. Commerce and Industry Minister Piyush Goyal recently held discussions with Maroš Šefčovič, the European Commissioner for Trade and Economic Security, signalling renewed urgency on both sides.
According to a senior official, “This round of talks is not just about tariffs. We are looking at digital trade, climate sustainability, technology collaboration, and mineral security. These issues are central to India’s growth.”
By the end of May, an Indian trade delegation is scheduled to return to Washington to advance negotiations with the United States. Though discussions have moved slowly in recent years, Indian officials now hope to finalise a comprehensive trade deal within four months.
“We are fully aligned with the idea of a more secure and balanced trade environment. It’s not about giving in to pressure, but about recognising mutual interests,” said an official close to the US negotiations.
However, not all bilateral efforts have progressed evenly. Negotiations with Australia, while promising, have slowed ahead of upcoming elections in Canberra. Trade talks with Oman, once considered relatively straightforward, have unexpectedly stalled. Observers believe the main sticking point is concessions around petrochemical products, though official confirmation remains elusive.
Despite these hiccups, India’s push reflects a larger strategy of economic de-risking, wherein reliance on a few large markets like China is being recalibrated in favour of a diversified global footprint.
“We can no longer afford to put all our export eggs in one or two baskets,” said a government source. “The world has changed post-COVID and post-Ukraine war. Geoeconomics now matters as much as geopolitics.”
The renewed momentum in trade negotiations underlines India’s intention to position itself as a resilient, forward-looking economy that is well-integrated with major global markets while safeguarding its own strategic interests.
