India is negotiating free trade agreements (FTAs) with eight to nine additional groups of countries and individual nations as it seeks to expand preferential market access and integrate more deeply with global supply chains, Commerce and Industry Minister Piyush Goyal said on Monday. The countries and blocs currently under discussion together account for around $15 trillion of GDP, according to Goyal.
Goyal said India’s broader FTA network could eventually cover around 75% of global trade. The government is positioning the agreements as a way to expand export opportunities, attract investment and establish India as a trusted partner in global value chains. The latest push comes after India has already concluded several major trade agreements with developed economies.
India Expands FTA Negotiations
India’s current trade strategy is focused on building agreements with a wider range of major economies and trading blocs.
Goyal said the additional negotiations involve eight to nine groups or individual countries, with the combined economies representing approximately $15 trillion in GDP.
The government believes expanding the FTA network can help Indian businesses access larger overseas markets while encouraging international companies to consider India as a manufacturing and investment destination.
India’s FTA Strategy At A Glance
| Particular | Details |
|---|---|
| Additional negotiations | 8-9 blocs/countries |
| GDP represented by these markets | Around $15 trillion |
| Long-term global trade coverage target | Around 75% |
| India’s current preferential trade access | Nearly two-thirds of global trade |
| Key objective | Expand exports and global value-chain participation |
| Government focus | Trade, investment and manufacturing |
The latest target represents an expansion from the government’s earlier assessment that India already had preferential access to nearly two-thirds of global trade through its concluded FTAs.
India Wants To Cover 75% Of Global Trade
The 75% target is significant because it would give Indian exporters preferential access to a much larger share of the world’s major markets.
FTAs generally reduce or eliminate tariffs on eligible goods and can also establish frameworks for services, investment and other areas of economic cooperation.
For Indian companies, wider market access could improve the competitiveness of products ranging from engineering goods and pharmaceuticals to textiles, automobiles and processed foods.
More FTAs
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Lower Trade Barriers
↓
Greater Market Access
↓
Higher Export Potential
↓
More Global Supply-Chain Integration
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Investment + ManufacturingHowever, the actual economic benefit will depend on how effectively Indian businesses use the agreements and whether they can meet the quality, pricing and regulatory requirements of overseas markets.
India Already Has Several Major Trade Deals
The latest negotiations build on a series of FTAs concluded by India in recent years.
The government has highlighted agreements involving Australia, the UAE, EFTA, the UK, Oman, New Zealand and the European Union, among others. Earlier in 2026, Goyal said India had finalized eight FTAs covering 37 developed countries in recent years.
The India-EFTA Trade and Economic Partnership Agreement is also notable because the four EFTA countries committed to a $100 billion investment target in India over 15 years, along with potential employment generation.
Major Recent Indian Trade Agreements
| Partner/Bloc | Status/Development |
|---|---|
| UAE | FTA implemented |
| Australia | FTA implemented |
| EFTA | TEPA implemented |
| UK | Agreement signed |
| Oman | Agreement signed |
| New Zealand | Talks concluded |
| European Union | Agreement concluded |
| Mauritius | Agreement implemented |
The agreements differ in their implementation status and scope, but collectively form the foundation of India’s expanding trade network.
EU And UK Deals Are Particularly Important
India’s trade strategy has increasingly focused on developed economies.
The European Union represents one of India’s largest potential export markets, while the UK agreement could create opportunities across goods and services.
Goyal has previously described the India-EU agreement as potentially one of the most significant trade deals for India.
The government has also emphasized that its agreements with developed economies are intended to support exports, attract investment, promote innovation and create jobs.
Why Developed-Market FTAs Matter
| Benefit | Potential Impact |
|---|---|
| Lower tariffs | Improves export competitiveness |
| Market access | Expands customer base |
| Investment provisions | Encourages FDI |
| Services access | Benefits IT and professional services |
| Supply-chain integration | Attracts global manufacturers |
| Regulatory cooperation | Reduces trade friction |
The government’s strategy is therefore not limited to increasing merchandise exports but also involves integrating India into international production and services networks.
$15 Trillion Of Additional Economic Markets
The eight to nine additional negotiations highlighted by Goyal represent economies with a combined GDP of around $15 trillion.
This provides an indication of the scale of India’s intended trade expansion.
However, GDP size alone does not determine the value of an FTA. Trade volumes, consumer demand, tariff structures, competitive industries and non-tariff barriers are equally important.
What Determines FTA Value?
Market Size
+
Trade Volume
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Tariff Reduction
+
Consumer Demand
+
Services Access
+
Investment Rules
+
Regulatory Cooperation
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Overall FTA OpportunityIndian exporters will ultimately benefit only if the agreements translate into commercially meaningful market access.
Government Wants FTAs To Drive Exports
Goyal has repeatedly stressed that India needs to use FTAs to increase exports rather than simply allow imports to grow.
In May, he warned Indian industry that businesses need to strengthen global engagement, invite investment and promote exports to take advantage of new trade agreements.
This is important because lowering tariffs can increase trade in both directions.
Potential FTA Impact On India
| Positive Outcome | Potential Risk |
|---|---|
| Higher exports | Higher imports |
| New overseas markets | Greater foreign competition |
| More FDI | Pressure on less competitive domestic firms |
| Global supply-chain integration | Compliance costs |
| Technology transfer | Adjustment pressure on MSMEs |
| Larger customer base | Stronger international competition |
The government is therefore encouraging Indian companies to improve productivity and competitiveness alongside the expansion of trade agreements.
India Targets $1 Trillion In Exports
The FTA strategy is also connected with India’s broader export ambitions.
India’s total exports of goods and services reached a record $863 billion in FY26, according to government figures cited by Goyal. The government has set an ambition of reaching $1 trillion in exports in FY27.
Expanding preferential access to major markets is expected to play an important role in reaching that target.
India’s Export Ambition
| Indicator | Value |
|---|---|
| FY26 total exports | $863 billion |
| FY27 export ambition | $1 trillion |
| Additional FTA markets under discussion | 8-9 |
| GDP represented by new negotiations | ~$15 trillion |
| Long-term FTA trade coverage target | ~75% of global trade |
The gap between $863 billion and $1 trillion represents roughly $137 billion in additional exports, highlighting the scale of the government’s ambition.
Manufacturing Is A Major Part Of The Strategy
India wants FTAs to support its ambition of becoming a major global manufacturing hub.
Access to overseas markets can make India more attractive to companies considering where to establish production facilities.
A company may be more willing to manufacture in India if it can use the country as an export base for markets covered by preferential trade agreements.
FTA Market Access
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Manufacturing In India
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Lower Export Barriers
↓
Global Supply-Chain Integration
↓
More Investment
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Jobs + Industrial GrowthThis is one reason the government has linked trade agreements with its broader investment and manufacturing strategy.
FTAs Could Help Diversify India’s Export Markets
Another potential benefit is reducing dependence on a limited number of overseas markets.
A broader FTA network gives exporters more opportunities to sell products across different regions.
This can become particularly valuable when individual markets face tariff increases, weak demand or geopolitical disruptions.
Diversification Effect
| Earlier Dependence | Broader FTA Strategy |
|---|---|
| Fewer major markets | Multiple trading partners |
| Greater country-specific risk | More diversified demand |
| Limited preferential access | Wider tariff advantages |
| Higher trade concentration | Broader export footprint |
Diversification does not eliminate global trade risks, but it can reduce dependence on individual markets.
India Is Also Negotiating With Regional Blocs
India’s trade strategy is not limited to bilateral agreements.
The country has also been exploring negotiations with regional groupings.
Earlier this year, Goyal said India had begun discussions with Mercosur to expand its existing preferential trade agreement. He also said India had finalized terms of reference with the Gulf Cooperation Council (GCC) and was considering trade discussions with the Southern African Customs Union (SACU).
Potential Regional Trade Partners
| Bloc/Market | India’s Position Reported Earlier |
|---|---|
| Mercosur | Discussions to expand existing PTA |
| GCC | Terms of reference finalized |
| SACU | Considering a trade agreement |
| Canada | Active trade discussions |
| Chile | Trade discussions advanced |
| Peru | Potential trade agreement discussions |
The exact composition of the eight to nine additional negotiations referred to by Goyal in his latest remarks was not specified in the Business Standard report.
Trade Agreements Could Attract More Foreign Investment
FTAs can also influence investment decisions by multinational companies.
If India provides access to large markets, manufacturers may view the country not only as a domestic consumer market but also as an export platform.
This is particularly relevant for sectors such as electronics, automobiles, pharmaceuticals, chemicals and engineering.
FTA And Investment Link
Large Domestic Market
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FTA Access
↓
India Becomes Export Platform
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Global Companies Invest
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Factories + Supply Chains
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Exports + EmploymentThe government has repeatedly presented this combination of trade access and investment as part of its strategy to make India a trusted global manufacturing partner.
India Must Improve FTA Utilisation
Signing an FTA does not automatically guarantee higher exports.
Businesses must understand tariff preferences, rules of origin, certification requirements and other conditions.
India has therefore increasingly emphasized effective utilization of its existing agreements.
The government has said the next stage of its FTA strategy should focus on helping exporters use the market access already negotiated.
From Signing To Utilisation
| Stage | Requirement |
|---|---|
| Negotiation | Secure market access |
| Signing | Finalize legal agreement |
| Ratification/implementation | Put agreement into effect |
| Industry awareness | Educate exporters |
| Compliance | Meet rules of origin |
| Market development | Find overseas buyers |
| Export growth | Convert access into sales |
This implementation phase could ultimately determine whether India’s expanding FTA network produces the expected economic gains.
MSMEs Could Benefit But Face Challenges
Small and medium-sized businesses could gain access to new overseas customers through FTAs.
However, smaller exporters may also face difficulties understanding complex trade rules, meeting foreign standards and financing expansion.
The government will therefore need to ensure that the benefits of new trade agreements reach MSMEs rather than being concentrated among large corporations.
MSME Opportunities And Challenges
| Opportunities | Challenges |
|---|---|
| New export markets | Compliance costs |
| Lower tariffs | Quality standards |
| International partnerships | Financing |
| Supply-chain participation | Rules of origin |
| Technology transfer | Limited export capabilities |
Support for certification, market intelligence and export financing could help smaller businesses take advantage of the new agreements.
Services Could Become Another Major Beneficiary
India’s trade strategy also covers services.
The country has major strengths in information technology, business-process services, consulting, professional services and other knowledge-intensive sectors.
Greater access to overseas services markets could therefore complement merchandise exports.
Goyal has emphasized that FTAs should create opportunities for India’s people in the services sector while maintaining safeguards for sensitive domestic interests.
Sensitive Sectors Remain A Key Negotiating Issue
India has historically been cautious about opening certain sensitive sectors to foreign competition.
Agriculture, dairy and specific manufacturing segments can be politically and economically sensitive because of their impact on farmers, MSMEs and domestic producers.
The government has said recent FTAs protect sensitive sectors and maintain safeguards on areas such as dairy and genetically modified products.
This means future negotiations are likely to involve a balance between market access and domestic protection.
The Bigger Picture
India’s plan to negotiate FTAs with another eight to nine blocs or individual countries represents a significant expansion of its global trade strategy. The markets under discussion collectively account for around $15 trillion in GDP, while Commerce Minister Piyush Goyal has said India’s FTA network could eventually cover about 75% of global trade.
The strategy comes after India has already concluded several agreements with developed economies and gained preferential access to nearly two-thirds of global trade, according to the government. The next challenge will be turning those agreements into actual export growth, investment and manufacturing activity. With India targeting $1 trillion in exports in FY27, effective utilization of FTAs could become an increasingly important part of the country’s broader economic strategy.
Looking Ahead
India’s expanding FTA network could give exporters access to a significantly larger share of the global economy while strengthening the country’s position in international supply chains. The government’s focus on developed economies, regional blocs and individual markets suggests that trade policy is increasingly being used as a tool for attracting investment and supporting manufacturing, rather than simply reducing tariffs.
The key test will be implementation. India will need businesses, particularly MSMEs, to actively use the preferential access created by the agreements, while ensuring domestic industries can compete with increased imports. If the government can combine new FTAs with stronger manufacturing capabilities, competitive pricing, quality improvements and lower logistics costs, the planned expansion toward 75% global trade coverage could become an important pillar of India’s long-term export strategy
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