With India signing a series of free trade agreements with developed countries, the government is working on an FTA utilisation plan to help maximise benefits from these pacts, an official said.

Since 2021, India has finalised free trade agreements (FTAs) with Mauritius, Australia, the UAE, Oman, New Zealand, the EFTA (European Free Trade Association), the European Union (EU), the U.K. and U.S.

These pacts cover 38 countries whose combined global imports stand at about $12 trillion.

The main Indian sectors that have received duty-free market access in these FTA partner countries include agriculture, textiles and apparel, gems and jewellery, leather and leather goods, engineering, electronics, chemicals, and pharmaceuticals.

Commerce and Industry Minister Piyush Goyal has held a series of meetings with industry associations, businesses and export promotion councils (EPCs) on ways to increase utilisation of these agreements. He suggested that businesses leverage these pacts to boost exports and domestic manufacturing.

The official added that the Minister on Monday (May 4, 2026) held a review meeting with key officers and chief negotiators to asses the progress of India’s free trade acts.

Another meeting on Thursday (May 7, 2026), was held on preparing a roadmap for obtaining sanitary and phytosanitary (related to plants and animals) approvals for Indian agricultural and fisheries products across global markets.

The Commerce Ministry has involved Indian missions abroad in the exercise. Besides, all the line ministries are part of the process, the official said.

The role of Indian missions includes ensuring FTA awareness in importing country, market intelligence on new opportunities, and expediting resolution of non-tariff barriers.

Similarly, the line ministries’ role includes ensuring sufficient production, alignment with global standards, and focus on trade facilitation.

The whole exercise is important as the country is looking at increasing goods and services exports to $2 trillion in the coming years (one trillion each).

The country’s goods and services exports rose 4.6% to an all-time high of $863.11 billion during 2025-26, from $825.26 billion in 2024-25, despite global economic uncertainties.

Merchandise exports grew 0.93% to $441.78 billion in the last fiscal year from $437.70 billion in 2024-25. Services exports too surged to an all-time high of $421.32 billion in 2025-26, compared to $387.55 billion a year ago, recording a growth of 8.71%.

Shishir Priyadarshi, President, CRF, and former Director, WTO, said Indian businesses must stop viewing FTAs merely as tariff-cutting arrangements as their real value lies in helping firms integrate into global value chains, diversify supply chains, and position themselves as trusted partners in an increasingly fragmented global economy.

“The FTAs should be seen as an opportunity not just to export more, but to export smarter – through branded products, advanced manufacturing, processed goods, and higher-value services that strengthen India’s long-term industrial competitiveness globally,” he said.

Feb 27 (Reuters) – The ​European ‌Union and India ​have agreed ⁠to grant each ‌other Most ‌Favoured ‌Nation ⁠status for ⁠a period of five ​years ‌starting from the date of ‌a trade ​deal entering into force, ⁠a draft of ‌the agreement showed on Friday (February 27, 2026).

Read | The India-EU trade deal is also a strategic turning point 

The FTA, finalised after years of negotiations re-launched in 2022, eliminates or reduces tariffs on 96.6% of EU exports to India by value and 99.5% of Indian exports to the EU by trade value.

The global “order of cooperation” has been supplanted by “might makes right”, former German Chancellor Angela Merkel said on Thursday (February 26, 2026), blaming Russia for overturning territorial principles in its invasion of Ukraine, and the United States for weakening the United Nations and multilateralism.

Delivering the inaugural Dr. Manmohan Singh Memorial Lecture, Ms. Merkel said many of the issues facing the world today could benefit from Singh’s “works and beliefs”. Her term as Chancellor of Germany (2005-2021) overlapped with his tenure as Prime Minister of India (2004-2014). Ms. Merkel welcomed the finalisation of the India-European Union Free Trade Agreement (FTA) that they had initiated in 2006, after “a marathon of negotiations”, in January this year.

“After the global financial crisis (2008) and its impact — recession in industrialised nations and the developing world —[Dr. Singh] made it clear that these difficulties needed cooperation, not confrontation,” Ms. Merkel told former National Security Advisor and author Shiv Shankar Menon in a conversation following the speech, which was entitled, “Germany and India in times of global change”.

‘Protectionism stifling growth’

“Dr. Singh’s warnings are of prime importance today as protectionism is stifling growth. This is why the India-EU FTA is so important,” she added, pointing out that the agreement could only move forward after European countries agreed to keep the sensitive agricultural sector out of the negotiations.

The event was organised by the Manmohan Singh Trust, which was established by his family and supported by the government, after his death in 2024. It was attended by several Opposition leaders including former Congress president Sonia Gandhi, former Finance Minister P. Chidambaram, and former External Affairs Minister Salman Khurshid, along with government officials, diplomats, and academics.

Recounting her interactions with the former Indian PM, Ms. Merkel — who credited him with the economic liberalisation of 1991 that “set the path for India’s economic growth for the next 30 years” — said he had never forced his opinions on her, but made her think about the conditions of the developing world, not just Europe and industrialised nations. She said she was disappointed that India did not initially support her objectives on climate change, as Singh said the Indian Parliament would never allow binding commitments on carbon reduction. The resultant compromises eventually led to the adoption of the Paris climate accord, she said.

‘Hold Big Tech to account’

Issuing a warning about the advent of unregulated technology, particularly Artificial Intelligence, Ms. Merkel said that it was the responsibility of governments to protect the interests of their people, and hold big technology companies, social media platforms, and AI developers to account. 

“Those of us still believing in multilateralism must work to protect these interests, as countries like China are setting their own rules and the United States is trying to prevent any kind of regulation [of AI]. If we don’t, the principle of multilateralism will be outdated and ossified,” Ms. Merkel said, adding that Singh’s record could be a source of “inspiration and courage” to find a way through the divergence. 

‘Democracy under pressure’

Ms. Merkel, who has recounted her meetings with both former PM Singh and current Prime Minister Narendra Modi in her memoirs, Freedom, said that she had been particularly impressed with India’s size and vast population, but also its diversity. During her lecture, she mentioned Singh’s tenure as the first Prime Minister from a minority (Sikh) community of more than a billion Indians as a matter of “pride”.

Ms. Merkel, who stepped down in 2021 after severe criticism of her migrant policy as well as her handling of Russia, said that democracy was under “pressure” across the world, including in Germany, but insisted that she stood by her decisions while in office. At the Christian Democratic Union’s party congress in Stuttgart last week, attended by Chancellor Friedrich Merz, Ms. Merkel had received a standing ovation from delegates, leading to speculation about her continuing interest in politics. However, responding to a question at Thursday’s event, Ms. Merkel said it was better for retired leaders not to express opinions or interfere in their successor’s work.

U.S. ‍Treasury Secretary Scott Bessent said on Wednesday (January 28, 2026) he was disappointed by Europe’s decision to strike a ​major trade agreement with India, saying it showed Europe put trade ‌ahead of the interests of the Ukrainian people.

Mr. Bessent told CNBC that Europe ​had been buying refined products made in India with sanctioned Russian oil supplies, and had been unwilling to match higher U.S. tariffs on Indian goods because they were separately negotiating a trade agreement.

The European Union on Tuesday (January 27, 2026) finalised a long-delayed trade deal with India that aims to boost two-way trade and reduce the bloc’s reliance on the United States amid growing global trade tensions.

The deal is expected to double ​EU exports to India by 2032 by eliminating or reducing tariffs on ⁠96.6% of traded goods by value, and will lead to savings of €4 billion ($4.8 billion) in duties for European companies, the EU said.

Asked whether this deal and others among countries excluding the United ​States would threaten the U.S., Mr. Bessent ⁠said, “They should do what’s best for themselves, but I will tell you, I found, I find the Europeans very disappointing.”

He said the deal made it clear why Brussels had balked at joining Washington’s decision to impose 25% tariffs on India last ‌year as part of a push to reduce its purchases of ‌Russian oil.

“The Europeans were unwilling to join us, and it turns out, because they wanted to do this trade deal,” he said.

“So every time ‍you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people.”

Mr. Bessent last week had signaled the potential removal ‍of the 25% additional U.S. tariffs on India following a sharp reduction in Indian imports of Russian oil.

Also Read |Europe financing ‘war’ against itself by buying Russian oil products from India: Bessent

Mr. Bessent’s disparaging comments about Europe came amid heightened tensions after President Donald Trump threatened to raise tariffs on imports from certain European countries over their opposition to his pursuit of Greenland. That tariff threat was later dropped, but it left many Europeans unsettled and anxious about the future of Transatlantic trade.

U.S. officials remain frustrated that the EU has not enacted the tariff reductions it promised as part of a framework ⁠trade deal reached with Washington in July.

Those concerns were heightened this week when Mr. Trump raised duties on imports from South Korea to 25% ​from 15%, citing slow moves by the country’s parliament to implement a framework trade agreement reached ⁠with Washington last year.

Mr. Bessent defended Mr. Trump’s action, saying it was “helpful to get things moved along”, adding that the South Korean parliament needed to ratify the trade deal.

Mr. Trump on Tuesday (January 27) said he expected the United States ​and South Korea to work out a solution, but he did not elaborate. South Korean officials are ⁠due to arrive in Washington on Wednesday (January 28) for talks with trade officials.

Ahead of the 16th EU-India Summit in the coming week, European Commission President Ursula von der Leyen kickstarted her four-day visit to India to firm up a series of initiatives to significantly expand ties.

President of the European Council Antonio Costa and Ms. von der Leyen will hold summit talks with Prime Minister Narendra Modi in New Delhi on January 27, 2026 amid increasing global concerns over disruptions caused by the Trump administration’s economic and security policies.

Mr. Costa will land in the national capital on Sunday (January 225, 2026). The two European Union leaders will grace the Republic Day celebrations as the chief guests on January 26.

At the summit, India and the EU are set to announce the conclusion of the much-awaited free trade agreement and firm up a strategic defence partnership pact and a framework for mobility of Indian professionals.

Union Minister Jitin Prasada welcomed Ms. von der Leyen at the airport.

Also Read | India-EU FTA will be the ‘mother of all deals’, says Piyush Goyal

“Charting the next phase of the India-EU Strategic partnership. A warm welcome to the President of the European Commission Ursula von der Leyen @vonderleyen, on her State Visit to India,” External Affairs Ministry spokesperson Randhir Jaiswal said on ‘X’.

“As the world’s two largest democracies, India and the EU share a partnership rooted in mutual trust and shared values,” he added.

The ties between India and the EU have been on an upswing in the last few years.

The EU, as a bloc, is India’s largest trading partner in goods. For the financial year 2024-25, India’s total trade in goods with the EU was worth about $136 billion, with exports around $76 billion and imports at $60 billion.

Union Minister of Commerce and Industry Piyush Goyal concluded a two-day visit to Brussels on Friday (January 9, 2026), which marked a “decisive step” forward in the India-EU Free Trade Agreement (FTA) negotiations, the government said in a statement on Saturday (January 10). 

During his visit, Mr. Goyal held a series of high-level dialogues with EU Commissioner for Trade and Economic Security Maroš Šefčovič, with both leaders providing guidance to negotiating teams to resolve pending issues and expedite the agreement.

“During their engagement, Union Minister Shri Piyush Goyal and Commissioner Šefčovič carried out detailed deliberations across key areas of the proposed agreement,” the statement said. “Both sides took note of the steady progress achieved across various negotiating tracks including market access for goods, rules of origin, services etc.”

It added that the Ministerial meetings capped a week of “intensive diplomatic and technical engagements” in Brussels. The Ministerial meetings were preceded by high-level discussions between Commerce Secretary Rajesh Agrawal and Director-General for Trade of the European Commission Sabine Weyand on January 6-7, 2026. 

“The meetings focused on stocktaking the progress achieved across various negotiating tracks,” the statement added. “The officials worked to narrow divergences and ensure clarity on outstanding issues, clearing the path for the Ministerial dialogue.”

It added that Mr. Goyal’s visit concluded with both sides expressing confidence and a renewed determination towards the “early conclusion of a modern, comprehensive, and mutually beneficial agreement”.

Mr. Goyal’s visit came just weeks before EU Commission President Ursula von der Leyen and EU Council President Antonio Costa are set to attend India’s Republic Day as chief guests ahead of the EU-India Summit, which is slated to begin in New Delhi on January 27.

India and the European Union (EU) on Friday (January 9, 2026) held talks in Brussels on the proposed Free Trade Agreement (FTA) and reaffirmed their commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs.

Commerce and Industry Minister Piyush Goyal is on a two-day official visit to the EU headquarters for the talks.

He has held high-level talks with EU Trade and Economic Security Commissioner Maros Sefcovic for securing a mutually beneficial FTA.

“During this dialogue, we deliberated across key areas of the proposed agreement. We reaffirmed our commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs while integrating Indian industries into global supply chains,” Mr. Goyal said in a social media post.

The ministerial engagements follow a week of intensive deliberations in Brussels, building upon the groundwork laid during high-level discussions held earlier this week (January 6-7) between India’s Commerce Secretary Rajesh Agrawal and Director General for Trade of the European Commission Sabine Weyand.

These talks are important as both sides are looking at concluding the negotiations at the earliest. The India-EU Summit is expected on January 27 here and the top EU leadership will grace the Republic Day parade as the chief guest on January 26.

On December 15, 2025, Mr. Agrawal stated that negotiations between India and the 27-nation bloc, the EU, have entered the “most difficult” stage, and both sides are engaged to bridge the differences and close the talks soon.

So far 16 rounds of negotiations have been held.

India is pushing for zero-duty access for its labour-intensive sectors, such as textiles and leather. On the other hand, the EU is demanding significant duty cuts in automobiles, medical devices, wine, spirits, meat, poultry, and a strong intellectual property regime.

In June 2022, India and the EU bloc resumed negotiations for a comprehensive FTA, an investment protection agreement and a pact on geographical indications after a gap of over nine years. The talks were stalled in 2013 due to differences on the level of opening up markets.

India’s bilateral trade in goods with the EU was $136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making it the largest trading partner for goods.

The EU market accounts for about 17% of India’s total exports, and the bloc’s exports to India constitute 9% of its total overseas shipments.

Indian goods’ exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact sails through.

The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, services, investment, trade remedies, rules of origin, customs and trade facilitation, competition, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development.