Prime Minister Narendra Modi recently addressed NDA MPs, highlighting India’s strategic trade wins amid shifting global dynamics. He emphasized the new US-India deal reducing tariffs on Indian goods to 18% and the landmark EU Free Trade Agreement (FTA) as proof that “the world is tilting towards India.”
Key Trade Milestones
- US Tariff Reduction: The agreement slashes duties from steep 50% levels imposed in 2025, easing pressures on exports like shrimps, gems, jewelry, and auto components; PM Modi and President Trump announced it, with India agreeing to halt Russian oil purchases.
- EU FTA Breakthrough: After 20+ years of talks, the deal covers 99.5% of goods traded, boosting India’s manufacturing, textiles, and services while opening EU markets; agriculture is excluded to sidestep disputes.
- Strategic Context: Both pacts hedge against US protectionism and China risks, redirecting Indian exports hit by prior tariffs into Europe and Asia.
Economic Impacts
India gains market access for labor-intensive sectors, potentially creating millions of jobs, though EU regulations on environment and standards pose compliance challenges. PM Modi hailed the EU FTA as the “mother of all deals,” predicting a manufacturing and services boom.
This positioning strengthens India’s global trade leverage, with Modi noting enhanced optimism post-UK and EFTA successes.
