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India pushes multi–market trade expansion: US, EU, LATAM & New Zealand FTA tracks gain momentum

20 May, 2025 115

India’s external trade policy calendar is accelerating strongly with India now working parallelly on deeper trade alignment across multiple major markets including the United States, Latin America, New Zealand and the European Union. This reflects a strategic shift from selective bilateral negotiations to a broader “multi-region trade diversification” framework aimed at increasing India’s export leverage, supply-chain security and global market access.

India–US Trade Talks Enter Constructive Phase

India and the US remain in an active negotiation cycle, with officials confirming that discussions are “progressing well”. Key negotiation themes include digital trade, services mobility, pharma IP norms, agriculture access and semiconductor supply chain alignment. A bilateral framework could significantly boost tech exports, improve professional services visa movement and strengthen defence industrial integration. The US is already India’s largest trade partner with bilateral goods + services exceeding USD 200 billion.

India Expands Trade Engagement with Latin America

India is widening its presence in Latin America with priority markets including Brazil, Mexico, Chile, Peru and Colombia. Commerce teams have concluded fresh sectoral interactions focused on agri, mining, petrochemicals and processed food categories. This reduces excessive dependence on EU-US-Gulf corridors and opens new energy, commodity and raw material sourcing lanes that are essential for Indian manufacturing and bio-fuel competitiveness.

India–New Zealand FTA Track Re-activated

After a long gap, the India–New Zealand FTA track has restarted, with New Zealand business chambers advising members to prepare internally for a potential deal scenario. Dairy remains the most sensitive negotiation chapter due to India’s MSME dairy protection needs. However, tech services, agri-value chain, education and food processing may see early commercial alignment. If successful, the deal would enhance India’s strategic footprint across the Indo-Pacific economic zone.

India–EU FTA Talks Intensify as Delegation Reaches New Delhi

The arrival of EU negotiators in New Delhi has pushed discussions into a deeper stage. The EU FTA is one of India’s most commercially influential negotiation tracks since it spans 27 countries. Key complexity areas include sustainability standards, CBAM, data norms, medical devices and wine/spirits tariff positioning. Sectors such as engineering goods, pharmaceuticals, textiles, automotive components and luxury categories stand to gain strongly once tariff and standards frameworks are aligned.

Conclusion

India’s trade diplomacy is now simultaneously advancing with the US, the EU, Latin America and New Zealand — shifting the country toward a multi-market and multi-region trade integration model rather than limited one-to-one bilateral pathways. Over the next 12–18 months, even partial closings across these tracks could reshape India’s export architecture, widen raw material sourcing options, improve risk-hedging for supply chains and elevate India’s global trade share meaningfully.

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