India’s free trade agreement (FTA) coverage is set to expand to nearly 71% of the country’s total exports as trade negotiations with the US and the European Union progress, significantly widening India’s global trade footprint.
Officials and trade experts said the expanded coverage reflects India’s strategy to secure preferential market access for key export sectors, including engineering goods, pharmaceuticals, textiles, chemicals, electronics and agricultural products. The proposed agreements are expected to reduce tariffs, streamline regulatory processes and improve supply chain integration with major global economies.
The move builds on India’s recent FTAs with partners in Asia-Pacific, the Middle East and Europe, which have already enhanced export competitiveness and diversified destination markets. With the US and EU accounting for a substantial share of global demand, deeper trade engagement is expected to provide a major boost to India’s medium-term export growth.
Industry bodies have welcomed the development, noting that broader FTA coverage could help Indian exporters navigate global trade uncertainties, improve price competitiveness and attract greater foreign investment into manufacturing.
As negotiations advance, policymakers are focusing on balancing market access gains with safeguards for sensitive domestic sectors, while ensuring that the agreements support India’s long-term growth and industrial ambitions.