India eyes stitching FTAs in tariff pause

Trade agenda includes FTAs with EU, UK, New Zealand, Asean

- Dhirendra Kumar

India is oping to seize the rare diplomatic window opened up by the 90-day pause in US tariffs to try and swiftly wrap up free trade deals with an array of trading partners, two government officials said, in the backdrop of a fullblown US-China trade war.

The pause is a "golden opportunity" to diversify India's export markets and reduce dependency on the US, especially as the global trade landscape gets increasingly volatile, the officials said. The pause applies to all countries except China-a move that reignited tensions between Washington and Beijing, signalling the start of what many are calling Trade War 2.0.

Meanwhile, the White House yet again ratcheted up its China offensive on Thursday, saying Beijing will now face tariffs totalling 145%. The news sent the US markets into another a tailspin, after the previous day's sterling gains.

Topping India's current trade agenda are free trade agreements (FTAs) with the European Union, United Kingdom, New Zealand, Australia, Peru and the Asean group of South-east Asian nations.

"New Delhi is hoping to finalize several of these within the 90-day US tariff window-expanding market access and boosting supply chain resilience," said one of two government officials mentioned above.

Both are directly involved in the process.

"This is a golden opportunity for India. We are recalibrating our export strategy and exploring new markets to diversify our export destinations," this official added.

Queries sent to ministries of commerce and external affairs on Thursday seeking comments for the story remained unanswered.