India Pivots Toward Global Trade Alliances to Shield Economy from US Tariff Pressure

India is moving quickly to finalize several free trade agreements that are expected to be concluded within the next few months. This accelerated approach reflects an effort to offset the effects of steep U.S. import tariffs and to expand India’s export markets at a time of heightened uncertainty in global trade. According to government sources, New Delhi is presently holding advanced negotiations with partners including New Zealand, Chile, and the European Union.

A key development in this broader trade agenda is the planned conclusion of a bilateral agreement with Oman, set to be formalized in Muscat. The proposed pact aims to boost two-way trade by easing access for Indian manufactured products, agricultural exports, and pharmaceutical supplies. Such agreements form a central pillar of India’s long-term economic strategy, helping the country strengthen its role in global supply chains while supporting job creation and industrial expansion.

The push to secure new trade partnerships has gained urgency following the introduction of U.S. import duties that surpassed 45% in August. These tariffs have placed considerable strain on Indian exporters, particularly in sectors such as auto components, metals, and textiles. Trade analysts note that India is increasingly relying on international agreements as a means to diversify export destinations, reduce dependence on the U.S. market, and cushion the impact of unpredictable trade measures.

At present, India has 15 broad-based trade agreements covering more than 25 countries, in addition to six more limited arrangements. If ongoing negotiations are successfully concluded, the country will have established formal trade relationships with nearly all major global economies, excluding China. Earlier agreements with Australia and the United Arab Emirates have already illustrated how such partnerships can significantly expand trade volumes.

Despite this progress, negotiations remain complex. Policymakers continue to weigh the benefits of greater market access against the need to protect domestic farmers and small businesses. Relations with the United States have also faced strain due to India’s continued purchases of Russian energy. Nonetheless, recent exchanges between senior leaders and visits by U.S. trade officials point to the possibility of improved ties, particularly as both nations look to deepen collaboration in technology and economic development.