India Builds Wider Global Trade Architecture as New FTA Talks Target Economies Worth Another $15 Trillion

India is accelerating the expansion of its global trade network, with negotiations underway with at least eight to nine countries or economic groupings representing around $15 trillion in combined GDP. If the emerging agreements are successfully concluded, Commerce and Industry Minister Piyush Goyal has said India’s network of preferential trade arrangements could ultimately connect the country with markets accounting for roughly 75% of global trade.

Goyal outlined the scale of India’s trade strategy while addressing business representatives during his visit to Japan on August 24, 2026. He is leading India’s largest-ever business delegation to Japan, comprising more than 200 representatives from sectors including manufacturing, semiconductors, automotive, steel, clean energy, financial services, healthcare and startups. The four-day visit covers Tokyo, Nagoya and Osaka and is intended to deepen investment, technology and industrial cooperation between the two economies.

The significance of the latest announcement lies not only in the number of negotiations but in the scale of markets India is attempting to connect with. According to Goyal, nine trade agreements concluded over the past four years cover economies with a combined GDP of around $60 trillion, while earlier agreements with markets such as Japan, South Korea and ASEAN add another roughly $10 trillion. The next wave of negotiations could extend this economic footprint by a further $15 trillion.

India’s trade policy has undergone a visible shift in recent years. Instead of concentrating primarily on regional agreements with economies competing in similar product categories, New Delhi has increasingly pursued agreements with developed and complementary markets where Indian manufacturers, service companies, professionals and agricultural exporters can gain access to higher-value demand.

Recent agreements illustrate this approach. The India-UAE Comprehensive Economic Partnership Agreement entered into force in 2022, followed by the Australia Economic Cooperation and Trade Agreement. The India-EFTA Trade and Economic Partnership Agreement became operational in October 2025, while the India-Oman CEPA entered into force in June 2026 and the India-UK Comprehensive Economic and Trade Agreement became operational in July. India has also signed an FTA with New Zealand, which is undergoing the ratification process, while negotiations on the India-European Union FTA were concluded in January 2026.

The network is still expanding. Official Commerce Ministry information issued in July lists ongoing negotiations or reviews involving the Eurasian Economic Union, Peru, Chile, Israel, Canada and the Maldives, alongside efforts to deepen or upgrade arrangements with Australia, South Korea, Sri Lanka and ASEAN. India and the United States are also continuing negotiations following the announcement of a framework for an interim bilateral trade agreement in February 2026.

Several of these negotiations have already moved into substantive stages. India and Israel completed the second round of negotiations for their proposed FTA in July, with discussions covering the full range of areas under the agreement. India and Canada have also committed to advancing negotiations for a Comprehensive Economic Partnership Agreement, with both sides setting an objective of concluding negotiations by the end of 2026.

The strategy is increasingly important for Indian manufacturing because preferential access can reduce or eliminate tariffs on Indian products entering major overseas markets. The government is seeking to connect sectors such as textiles, engineering goods, electronics, pharmaceuticals, automobiles, processed foods, leather, marine products, gems and jewellery and advanced manufacturing with larger pools of international demand.

The impact is already becoming visible in some established agreements. India’s merchandise exports to the UAE reached about $37.36 billion in 2025-26, making it India’s largest individual FTA export market. Exports to Australia reached around $7.28 billion, while the government’s August assessment showed rising use of preferential Certificates of Origin and an increasing number of Indian products entering FTA markets.

The benefits extend well beyond physical goods. India’s services exports reached $421.3 billion in 2025-26, making professional mobility, digital trade, financial services, engineering, healthcare and information technology increasingly important components of new-generation agreements. Recent FTAs have therefore begun to include commitments covering skilled professionals and service providers alongside conventional tariff reductions.

This is also where the trade strategy intersects strongly with Make in India. Preferential access to large developed markets can make India more attractive as a manufacturing base not only for domestic companies but also for multinational firms seeking to manufacture in India and export internationally. A company producing electronics, machinery, pharmaceuticals, automobiles or industrial components in India could potentially gain access to a much wider collection of markets through India’s expanding FTA network.

The objective is therefore larger than increasing exports alone. India is attempting to position itself as a reliable node in global value chains at a time when companies are diversifying manufacturing and sourcing networks. Combining a large domestic market with improving infrastructure, competitive manufacturing costs, digital capabilities and preferential access to major foreign economies could strengthen India’s case as an alternative location for global production.

At the same time, New Delhi has pursued a calibrated approach to tariff liberalisation. Recent agreements have maintained protections or transition arrangements for sensitive areas, particularly agriculture and sectors where rapid import liberalisation could affect domestic producers. The government’s stated approach is to expand market access while preserving policy space for farmers, MSMEs and vulnerable industries.

Goyal’s announcement in Japan therefore points to the emergence of a substantially different Indian trade architecture. The country is moving from a relatively limited collection of regional trade agreements towards an interconnected network spanning North America, Europe, the Middle East, the Indo-Pacific and other major economic regions.

Once negotiations currently underway are successfully completed, India could find itself linked through preferential agreements to markets representing a dominant share of world commerce. For Indian exporters and manufacturers, that would mean a far larger addressable market. For global companies, it would strengthen the argument for using India not only as a destination for sales but increasingly as a production, technology and export hub serving the world.

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