NEW DELHI -- India has accelerated a push to finalize several free trade agreements over the next few months to offset the impact of steep U.S.import tariffs and widen export destinations during growing global trade uncertainties.New Delhi is in advanced talks with the European Union, New Zealand and Chile and this week is set to sign its first agreement under the renewed push with Oman, according to Indian officials who spoke on condition of anonymity as the details are not yet public.Prime Minister Narendra Modi is expected to be in Oman's capital Muscat when the India-Oman free trade agreement, or FTA, is signed Thursday, officials said.The deal aims to boost bilateral trade and push India’s exports of engineering goods, textiles, pharmaceuticals and agricultural products, officials said.FTAs are a central pillar of India’s economic strategy as it seeks deeper integration into global supply chains, stronger export growth and sustained job creation.
By lowering tariffs and setting predictable trade rules, the pacts would help Indian businesses remain competitive and expand access to newer markets.With global trade increasingly shaped by tariff disputes and geopolitical tensions, India is betting that a wider network of trade agreements will help cushion external shocks and anchor its export ambitions.The stepped-up negotiations come as Indian exporters face pressure from higher U.S.import tariffs of 50%, which went into effect in August.
While the two countries have been negotiating a bilateral trade agreement, the tariffs have weighed on sectors such as textiles, auto components, metals and labor-intensive manufacturing.“India is clearly using FTAs as a strategic tool to diversify export markets and soften the impact of steep and uncertain U.S.tariffs,” trade analyst Ajay Srivastava said.In all, India has 15 FTAs covering 26 countries and six preferential trade agreements with another 26 nations while negotiating with more than 50 other partners, Sriva...