When India swiftly finalized a free-trade agreement with New Zealand in just nine months by the end of December, it signaled New Delhi’s strategy to expand its export destinations beyond the US. Following the imposition of hefty import tariffs by US President Donald Trump last year, India has stood firm against these levies while remaining open to negotiations.
This recent trade pact with New Zealand marks the third such agreement, following similar deals with the United Kingdom and Oman. Despite the US being India’s largest export market, accounting for around 18% of its total goods exports, India is exploring trade diversification to mitigate uncertainties stemming from the Trump administration’s trade policies.
While the possibility of a trade deal between India and the US remains uncertain due to India’s stance on sensitive sectors like agriculture and dairy, experts doubt that Washington will significantly reduce its tariffs. India is actively pursuing free trade agreements with other nations to broaden its export markets and reduce dependence on the US.
Commerce Secretary Rajesh Agrawal has noted the success of India’s efforts to diversify trade geographically and across sectors, leading to positive export growth expected to strengthen in the future. India’s exports have displayed resilience and growth, reaching a record $825.25 billion in the 2024-25 financial year, with a 5.43% increase to $562.13 billion in exports from April to November in the current financial year.
