Talks with Washington and Brussels come at a sensitive moment as the US, India’s largest trading partner, imposed 50% additional tariffs on Indian goods earlier this year in response to New Delhi’s purchase of Russian crude.
Despite tensions, both sides aim to finalise the first tranche of a bilateral trade pact by late 2025, with the goal of doubling trade from the current $191 billion to $500 billion by 2030. The US accounted for $131.8 billion of India’s trade in 2024/25, according to government data.
Parallel negotiations with the EU remain ongoing, alongside discussions with New Zealand, Oman, Peru and Chile. India also signed terms in August to begin FTA talks with the Russia-led Eurasian Economic Union.
India’s deal with the European Free Trade Association (EFTA), Switzerland, Norway, Iceland and Liechtenstein, takes effect October 1, securing $100 billion in investment commitments over 15 years in exchange for reduced tariffs on key imports such as Swiss watches and diamonds.
“The FTAs are part of India’s broader strategy to attract investment while balancing geopolitical tensions,” said trade economist Biswajit Dhar.
These agreements highlight India’s growing role in global supply chains as the West seeks to diversify away from China.
