Groundwork laid for big trade deals in new year

By Jan-end, EU FTA likely to be signed

- MUKESH JAGOTA

THE GLOBAL TRADE ecosystem was jolted out of its set ways in 2025 by US President Donald Trump's tariffs and countries rushed to secure alternate export markets through trade agreements. India stood out as the frontrunner among nations in signing such deals. However, it was one of the few prominent countries not to have buckled under the US pressure to sign an unequal trade pact with that country despite the hefty Trump tariffs starting to hit exporters from various sectors.

In 2025, India signed agreements with the UK, Oman and New Zealand. During the year the agreement with the European Free Trade Association (EFTA) also became operational. Then there is a big one with the European Union (EU) that will likely be finalised by the end of January. If the achievement of trade diplomacy was substantial in 2025, the groundwork laid in the past 12 months will make 2026 a year of many more such deals.

So far India has concluded 18 FTAs and by January-end this number will touch 19. Looking at the pipeline by the end of 2026 this number will be much bigger and the only major trade partner that would be out of the web of India's free trade network will be China. With China there is no inclination for a trade deal nor does it make economic sense due to the large deficit India faces.