India's Proactive Global Trade Strategy

India has adopted a proactive trade strategy to enhance exports and its position as a global trade partner, focusing on ambitious free trade agreements (FTAs) and increased presence in international economic forums.

Foreign Trade Policy (FTP) 2023

• Aims to increase exports to $2 trillion by 2030.
• Recorded a 6.05% annual increase in total exports, reaching $825.25 billion, as per the Department of Commerce’s 2025 Year-End Review.

Shift in Trade Strategy

• From a cautious approach to a proactive strategy with comprehensive FTAs with major developed economies.
• Estimated that FTAs will cover nearly 71% of India's export basket by 2026.
• Focused on integration with advanced economies like Australia, EU, UAE, UK, and US.

Key Trade Agreements

• India-EU Free Trade Agreement:
  • Signed on January 27, 2026, creating a vast free trade zone covering nearly two billion people.
  • Reduces/eliminates tariffs on over 90% of traded goods, boosting market access for Indian exporters.
  • Enhances competitiveness against exporters like Bangladesh and Vietnam.
• India-U.S. Framework Agreement:
  • Signed in February 2026, focusing on reciprocal trade and reducing tariffs.
  • Prioritizes collaboration in sectors like rare earths and semiconductors.

Strategic Objectives

• Gain preferential access to lucrative markets, boosting export potential.
• Integrate Indian firms into global supply chains, enhancing competitiveness.
• Serve as instruments for enhancing diplomatic influence and shaping trade norms.

Overall Aim

India's evolving global trade strategy aims to establish it as an economic superpower and achieve Viksit Bharat by expanding market access, attracting investment, and diversifying exports.