India Pushes Forward on FTAs Even as US Trade Tensions Simmer

At a time when global trade winds are shifting and protectionist policies are making a comeback, India is quietly but steadily negotiating its place in the world’s economic order. The country’s free trade agreement (FTA) talks with multiple global partners are moving into crucial stages, even as its most high-profile discussions—with the United States—face turbulence.

On Tuesday, New Delhi once again became the stage for a high-stakes meeting between Indian negotiators and representatives of the United States, focused on the long-discussed India–US Bilateral Trade Agreement (BTA). The talks come in the shadow of Washington’s recent move to slap a hefty 50% import tariff on Indian goods, a step New Delhi has strongly denounced as “unfair, unjustified and unreasonable.”

India–US Trade Talks: A Rocky Path

Five full rounds of negotiations on the India–US BTA have already taken place. The sixth round, originally scheduled for late August, was abruptly postponed after the tariff escalation. Instead, the latest discussions—led by Brendan Lynch, US Trade Representative for South and Central Asia, and Rajesh Agarwal, India’s chief negotiator and Special Secretary in the Commerce Ministry—were described as exploratory rather than formal negotiations.

“This is not the sixth round of negotiations, but it is definitely discussions on the trade talks and trying to see how we can reach an agreement between India and the US,” Agarwal clarified on Monday.

The timing is telling. Only recently, Prime Minister Narendra Modi responded positively to US President Donald Trump’s remarks about strengthening trade ties, expressing hope that negotiations could “unlock the limitless potential” of the India–US partnership. Despite weeks of sharp rhetoric and tariff escalations, both sides appear to be testing the waters for a more conciliatory approach.

Beyond the US: India’s Global Trade Push

While the US talks grab headlines, India’s trade negotiators have been busy on several other fronts, often with more progress. The government’s strategy is clear: reduce overdependence on one market, diversify trade relationships, and secure better access for Indian exporters.

Some of the key tracks include:

• India–EU FTA: The 13th round of negotiations took place earlier this month (September 8–12, 2025), covering over 75 technical sessions on sensitive issues such as agriculture, digital trade, market access, and intellectual property rights. The next round will move to Brussels from October 6–10, 2025.

• India–Australia CECA: Eleven formal rounds are complete, with both countries working to upgrade the existing Economic Cooperation and Trade Agreement (ECTA) into a full-fledged FTA.

• India–New Zealand FTA: Negotiations entered their third round this week in New Zealand (September 15–19, 2025).

• India–Sri Lanka ETCA: Fourteen rounds have already been wrapped up, the most recent in July 2024.

• India–Oman CEPA: Talks have successfully concluded, with all chapters finalized after five rounds.

• India–Peru FTA: The 8th round is ongoing, with the 9th round planned for November 3–5, 2025.

• India–Chile FTA: Two rounds completed, with the third scheduled for October 27–31, 2025.

• India–Korea CEPA (Upgradation): Eleven rounds have been held so far, the latest in Seoul in July 2024.

• AITIGA Review (ASEAN–India Trade in Goods Agreement): Ten joint committee meetings and eight negotiation rounds are complete. The 11th meeting in October is expected to move towards closure by year-end.

The Stakes for India

For India, these trade negotiations are more than just about lowering tariffs—they are about positioning itself in global supply chains at a time when companies are rethinking dependence on China and looking for alternative manufacturing and sourcing hubs. Officials in the Commerce Ministry highlight that these FTAs are crucial for:

• Securing greater market access for Indian goods and services.

• Attracting foreign investment into key sectors.

• Strengthening strategic partnerships in energy, technology, and digital trade.

• Enhancing resilience by diversifying away from over-reliance on any single market.

India’s stance on energy imports, particularly Russian crude oil, has also become a flashpoint in trade diplomacy. While the US has voiced concerns, New Delhi has consistently defended its purchases as being guided by national interest and market dynamics, underscoring that energy security cannot be compromised.

The next few months could prove decisive. Several negotiations are already in advanced stages, and deals with partners like the EU, Australia, and Oman may see significant breakthroughs. The US track, while complicated, remains politically significant, given the scale of bilateral trade and the strategic importance of the partnership.

If India can successfully close even a handful of these deals, it would mark a turning point in the country’s trade strategy—reshaping its global economic role and helping Indian businesses tap into new growth opportunities over the next decade.

For now, though, the world is watching New Delhi closely—balancing its push for greater market access with its need to hold ground against the tariff firepower of one of its most important trade partners.