India’s Expanding Free Trade Network Could Cover 75% of Global Trade

India is rapidly expanding its network of free trade agreements as part of a wider strategy to deepen integration with global supply chains, improve market access for Indian exporters and position the country as a competitive manufacturing and services base.

Union Commerce and Industry Minister Piyush Goyal has said that India’s existing and upcoming trade agreements could eventually provide preferential access to around 75 per cent of global trade, giving Indian exporters broader access to major international markets.

Nine Recent FTAs Cover Economies Worth About $60 Trillion

According to the Ministry of Commerce and Industry, India’s recent free trade agreements span economies representing around $60 trillion in GDP. These agreements provide preferential access to markets accounting for a substantial share of global commerce.

The government has focused strongly on agreements with developed economies whose markets complement India’s manufacturing and services strengths. The objective is to combine export expansion with investment, technology partnerships and deeper participation in global production networks.

Upcoming Negotiations Could Push Coverage Towards 75%

India is also pursuing negotiations or deeper market-access arrangements with several additional partners.

Commerce Ministry statements have identified Canada, Mexico, Chile, Mercosur, the Southern African Customs Union, the Gulf Cooperation Council and Israel among the economies or blocs where negotiations are underway or expected to progress. India is also reviewing existing trade arrangements with ASEAN, South Korea and Japan.

If these negotiations and reviews advance as planned, Indian exporters could eventually gain preferential access to markets representing roughly three-fourths of global trade.

FTAs Aim to Improve India’s Position Against Export Competitors

Tariff disadvantages have historically affected several Indian export sectors, particularly in markets where competing countries already enjoy preferential access.

Textiles provide one example. Exporters from countries such as Bangladesh and Vietnam have benefited from lower tariffs in some developed markets, while Indian products have often faced comparatively higher duties.

India’s recent agreements are intended to reduce such disadvantages and improve the competitiveness of Indian goods. This creates an opportunity for domestic manufacturers to compete more effectively on quality, scale and delivery once tariff barriers are lowered.

UK, UAE, Australia and Oman Form Part of the New Trade Architecture

Several agreements are already forming the backbone of India’s emerging trade network.

India has operational or recently concluded trade arrangements with economies including the United Arab Emirates, Australia, the United Kingdom, Oman and the European Free Trade Association countries. These agreements expand preferential access across Europe, the Gulf and the Indo-Pacific.

The EFTA agreement is particularly notable because it combines market access with investment commitments from Switzerland, Norway, Iceland and Liechtenstein.

Developed Markets Are Central to India’s Trade Strategy

The government’s recent trade policy has placed particular emphasis on agreements with developed economies.

Piyush Goyal has argued that access to higher-income markets can help Indian companies improve quality, attract investment and integrate more deeply with global production networks. Such agreements can also encourage domestic firms to strengthen productivity and technological capability.

This strategy places trade agreements within a broader industrial policy rather than treating them only as tariff-reduction instruments.

Global Supply Chains Are a Major Focus

The expansion of India’s FTA network is closely linked to the country’s ambition to become a larger part of global supply chains.

Manufacturers choosing production locations consider not only labour costs and infrastructure but also the markets that can be served from a particular country on competitive tariff terms.

A company manufacturing in India with preferential access to a large share of world trade could potentially serve multiple international markets from one production base. This strengthens India’s position as an export-oriented manufacturing destination.

MSMEs and First-Time Exporters Are Key Targets

The Commerce Ministry has also emphasised that the benefits of free trade agreements should extend beyond large corporations.

The government has called for wider FTA utilisation across districts, with particular attention to MSMEs, startups, traders, entrepreneurs and women-led businesses. The objective is to help smaller companies understand tariff concessions, rules of origin and the market opportunities created by new agreements.

An FTA creates access, but companies must still meet product standards, documentation requirements and origin rules before they can benefit from preferential tariffs.

India Is Seeking Competitive Tariffs, Not Zero Tariffs Everywhere

The government has stressed that trade negotiations are not solely about securing zero tariffs.

What matters strategically is whether Indian exporters receive treatment that is equal to or better than that available to competing suppliers.

This approach gives negotiators greater flexibility while allowing India to protect sensitive sectors and secure favourable access in industries where Indian businesses have competitive strength.

Sensitive Sectors Remain Protected in Negotiations

India’s trade agreements are also structured around safeguards for sensitive areas.

The Commerce Ministry has said sectors involving farmers, fishermen, MSMEs, pharmaceuticals, textiles and processed agricultural products receive detailed consideration during negotiations.

The government’s stated approach is to expand market access while avoiding sudden import pressures that could damage vulnerable domestic sectors.

Trade Agreements Are Becoming Investment Agreements

India increasingly views FTAs as instruments for attracting investment as well as expanding exports.

The EFTA Trade and Economic Partnership Agreement illustrates this approach. The EFTA countries have committed to facilitate $100 billion in investment into India over 15 years and support the creation of one million direct jobs.

This model links trade access with domestic industrial development, employment and long-term capital formation.

India’s Export Ambition Is Rising Alongside FTA Expansion

The government has set ambitious export targets as new trade agreements become operational.

India is seeking to push exports towards the $1 trillion mark, supported by better market access, growing services exports and deeper participation in international production networks.

FTAs alone cannot deliver this growth, but they can improve competitiveness by reducing barriers and expanding the number of markets available to Indian companies.

India Is Building a New Trade Geography

India’s trade policy is increasingly shifting from a limited number of bilateral agreements towards a broader network covering major economic regions.

The country already has agreements across Europe, the Gulf and the Indo-Pacific, while additional negotiations are extending towards North America, Latin America and other emerging markets.

This wider geographical spread can reduce dependence on a small number of export destinations and give Indian businesses more flexibility when global demand shifts.

Wider FTA Access Could Strengthen Make in India

A larger preferential trade network directly supports the logic behind Make in India.

Manufacturing in India becomes more attractive when products made in the country can enter multiple international markets on competitive tariff terms.

For global companies, this creates the possibility of using India both as a large domestic market and as an export base. For Indian manufacturers, it expands the potential market well beyond national borders and can justify larger investments in production capacity and technology.

FTA Utilisation Will Determine the Real Impact

Signing trade agreements is only the first stage.

Their real value depends on whether exporters actually use the concessions available to them. Companies must understand tariff schedules, rules of origin, certification and documentation requirements before they can benefit from preferential treatment.

Higher utilisation will determine whether negotiated market access translates into actual export growth.

India Moves Towards a Much Larger Global Market

India’s expanding FTA network marks a significant change in the country’s approach to global trade.

Recent agreements already provide preferential access to a large share of world commerce, while ongoing negotiations could eventually push that coverage towards approximately 75 per cent of global trade.

The wider opportunity lies in using these agreements to strengthen exports, attract investment, deepen manufacturing and integrate Indian companies more closely into international supply chains.

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References

Press Information Bureau, Ministry of Commerce & Industry — Union Minister of Commerce & Industry Shri Piyush Goyal Calls for Nationwide FTA Utilisation Drive to Expand India’s Global Trade Footprint, September 3, 2026.

Press Information Bureau, Ministry of Commerce & Industry — India Building Bridges of Trade, Trust and Transformation; Secures Preferential Access to Two-Thirds of Global Trade, February 24, 2026.

Press Information Bureau, Ministry of Commerce & Industry — India’s FTAs with Developed Economies to Support Growth, Innovation, Quality Upgradation and Job Creation, June 11, 2026.

Press Information Bureau, Ministry of Commerce & Industry — Union Minister of Commerce and Industry Shri Piyush Goyal Urges Industry to Leverage FTAs with Developed Nations through Quality Focus, March 25, 2026.

Ministry of Commerce & Industry — Here’s Why India Is Signing Multiple Free Trade Agreements With Major Economies, August 21, 2026.

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