Shashi Kiran Shetty, Founder and Executive Chairman of Allcargo Group and Chairman of the Board of Governance at IIM Mumbai, has said that India’s recent trade agreements reflect a long-term strategic approach that is reinforcing stability in global trade.
Commenting on developments following the Union Budget, Shetty said the India–European Union Free Trade Agreement (FTA) stands out as a landmark in both scale and ambition. He noted that its significance is amplified by the recently announced India–US trade understanding, under which US tariffs on key Indian exports are set to decline sharply from 50 per cent to 18 per cent.
According to Shetty, the combined impact of these agreements signals a clear shift in India’s global trade positioning. “India is anchoring itself more firmly into predictable, rules-based global trade frameworks at a time when uncertainty defines much of the world economy,” he said.
Highlighting the India–EU FTA as a watershed moment, Shetty pointed out that tariff liberalisation across 90–95 per cent of traded goods is expected to unlock substantial European investment into the ‘Make in India’ ecosystem. This, he said, would further strengthen India’s appeal as a trusted destination for global companies pursuing a China+1 strategy.
Shetty also drew attention to European Commission President Ursula von der Leyen’s emphasis on safe and resilient supply chains. He underscored the importance of efficient manufacturing, integrated logistics, and digital trade infrastructure as key enablers of the agreement’s success.
In addition, he noted that the strong focus on clean technology and green energy within the EU agreement would help Indian enterprises align with some of the world’s most stringent sustainability standards, accelerating decarbonisation while enhancing long-term competitiveness.
“The India–EU FTA, reinforced by deepening trade alignment with the United States, forms a powerful blueprint for India’s future growth,” Shetty said.
