India is expanding its FTA network to boost market access and deepen integration with global value chains
India is negotiating free trade agreements (FTAs) with at least eight to nine more groups of countries and individual nations as it seeks to expand preferential market access and eventually cover about 75 per cent of global trade, Commerce and Industry Minister Piyush Goyal said on Monday.
The ongoing negotiations involve economies that together account for around $15 trillion in gross domestic product (GDP), Goyal said while addressing business representatives from India and Japan in Tokyo.
The minister said India has already significantly expanded its network of trade agreements in recent years and is seeking to use FTAs to strengthen its integration with global value chains.
“So today India opens up the doors to preferential market access to $70 trillion of economy. We are in negotiations with at least 8 or 9 other groups of countries or countries which will add another $15 trillion,” Goyal said.
“Basically 75 per cent of global trade will be covered through our free trade agreements,” he said, adding that the agreements would help position India as a trusted partner in global value chains.
India’s expanding trade network
Goyal said India has signed nine FTAs over the past four years. These agreements cover 38 developed countries with a combined GDP of about $60 trillion, he said.
More from BusinessEarlier trade arrangements with countries including Japan and South Korea, as well as the Association of Southeast Asian Nations (ASEAN), have added another $10 trillion in terms of the economies covered by India’s preferential trade arrangements.
The latest negotiations are part of India’s broader effort to diversify export markets and secure better access for Indian goods and services.
The government has been pushing FTAs as a key component of its trade strategy at a time when global supply chains are being reshaped by geopolitical tensions, tariff measures and growing competition for investment.
For India, wider trade agreements could provide exporters with greater access to overseas markets while helping domestic manufacturers integrate more deeply with international production networks.
Focus on Japan ties
Goyal is leading a business delegation of more than 200 representatives in Japan as India seeks to strengthen bilateral trade and investment ties.
He said growing economic engagement between the two countries should eventually result in more balanced trade.
India and Japan have had a trade agreement in place for several years, but the government has continued to push for greater market access and stronger investment flows between the two economies.
Goyal also highlighted opportunities for Japanese and other international investors in India, particularly in sectors such as data centres, manufacturing and artificial intelligence.
Seeking a bigger role in global value chains
India’s FTA strategy comes as the country seeks to expand its role in global supply chains and attract investments from companies looking to diversify production bases.
Goyal said the combination of India’s large domestic market and expanding preferential access to overseas economies could strengthen its position as a destination for global investment.
The government has increasingly linked trade agreements with its broader manufacturing and investment ambitions, seeking to turn improved market access into higher exports and greater participation in global value chains.
The proposed expansion of the FTA network would take India closer to its stated objective of becoming a more deeply integrated and reliable trading partner for businesses worldwide.
