New Delhi, India — January 11, 2026
India is rapidly expanding its global trade strategy as negotiations with the United States remain stalled following President Donald Trump’s decision to impose steep tariffs on Indian goods, prompting New Delhi to seek alternative export markets.
In August 2025, the Trump administration imposed 50 percent tariffs on select Indian exports, citing India’s continued purchases of Russian oil. The move has raised concerns over potential job losses and threatens India’s long-term goal of becoming a global manufacturing hub.
In response, India has intensified trade diplomacy. Over the past year, the government signed or operationalized four trade agreements, including a landmark free trade pact with the United Kingdom. Negotiations are also underway with the European Union, Eurasian Economic Union, Mexico, Chile, and the Mercosur bloc, reflecting a broad effort to reduce reliance on the U.S. market.
Trade analysts say the pace of dealmaking marks one of India’s most active years on the trade front. SL Kalra of the Global Trade Research Initiative described the push as a strategic diversification effort, while economist Vijay singh said the acceleration is directly linked to Washington’s tariff actions.
High-level diplomatic engagement is also intensifying. European Commission President Ursula von der Leyen is expected to visit India later this month, while German Chancellor Friedrich Merz is scheduled to meet Prime Minister Narendra Modi to discuss expanding bilateral trade and investment ties.
India is also leveraging smaller agreements to access wider markets. Trade pacts with Oman and New Zealand are being positioned as regional gateways. Notably, the New Zealand free trade agreement is expected to attract $20 billion in foreign investment, despite India making limited concessions on agricultural imports.
Recent data underscores the urgency of diversification. India’s goods exports rose 19 percent in November 2025, driven largely by shipments of electronics and marine products to the European Union and China.
While Indian exporters continue to stress the importance of reaching a deal with the United States, policymakers appear focused on spreading trade risk and safeguarding growth amid rising geopolitical and economic uncertainty.
