After facing tariff pressure and protectionist policies during the Trump tax and tariff era, India accelerated efforts to diversify its trade partnerships. In the years that followed, New Delhi signed multiple free trade agreements (FTAs) and strategic trade deals with major global economies to protect exports, boost manufacturing, and strengthen its global supply chain position.
Below is a detailed look at India’s major trade deals after Trump-era tariffs and their economic effects.
India–US Trade Deal After Trump Tariffs:
After trade negotiations which stretched almost around a year, India and the United States finally reached a much-anticipated trade agreement as PM Modi and President Donald Trump announced the deal on Monday evening, prelude of which was given by the US ambassador to India, Sergio Gor, just hours ahead.
Under the deal, Indian exporters got a huge relief as President Trump said that the tariffs on India exports to the US have been reduced to 18% from 25%. However, he also claimed that India has agreed to stop buying oil from Russia and to buy more oil from the United States and potentially Venezuela. On the other hand, the tariffs on India exports to the US have been reduced to 18% from 25%.
While the post by President Trump on Truth Social only talked about the reciprocal tariffs, a While House official confirmed to HT that the other 25%, which was imposed as a penalty on India for buying Russian oil, will be dropped “as part of India’s agreement to cease Russian oil purchases”. “Final tariff will be 18%,” the official said.
The deal was concluded after both the leaders spoke on Monday. While PM Modi shied away from mentioning trade deal, ministers including Ashwini Vaishnaw and Piyush Goyal confirmed on X that a trade deal has been agreed upon.
Key highlights include reduction in high US tariffs imposed during the Trump administration, increased Indian purchases of US energy, defence equipment, and aircraft and improved market access for Indian textiles, engineering goods, and pharmaceuticals
Impact includes boosting of Indian exports to the United States, strengthening of the Indian rupee and stock markets and improved investor confidence and supply-chain integration
India–UK Free Trade Agreement (FTA):
india and the United Kingdom have signed a landmark Free Trade Agreement (FTA), marking a major step towards deepening economic ties and boosting bilateral trade. The deal is being described as one of India’s most comprehensive trade agreements, with wide-ranging benefits for exporters, service professionals, businesses, and consumers in both countries.
Under the agreement, the UK will eliminate tariffs on 99% of Indian exports, covering nearly 100% of the trade value. This is expected to significantly enhance India’s competitiveness in the UK market. Key sectors such as marine products, textiles, leather, and processed foods will see tariffs reduced sharply—from levels as high as 70% to zero—providing a strong push to Indian manufacturing and exports.
The FTA is being hailed as a major win for Indian agriculture, with the UK opening its markets duty-free for nearly all Indian agri-exports. Importantly, this access comes without undermining India’s sensitive agricultural sectors, ensuring protection for domestic farmers while expanding export opportunities.
India’s strength in services has been strongly reflected in the agreement. The FTA includes ambitious commitments covering IT, finance, education, healthcare, and other high-value services, giving Indian companies and professionals greater access to the UK market.
In a significant move, the UK will allow 5,000 Indian chefs, yoga instructors, and artists annually under contractual service quotas, strengthening people-to-people ties and cultural exchange.
Key Highlights
- Nearly zero-duty access for 99% of Indian exports
- Major benefits for textiles, leather, gems & jewellery, and IT services
Impact
- Expanded Indian exports to the UK
- Strengthened services trade and professional mobility
- Reduced India’s dependence on the US market
India–EU Free Trade Agreement
The EU and India concluded negotiations today for a historic, ambitious and commercially significant free trade agreement (FTA), the largest such deal ever concluded by either side. It will strengthen economic and political ties between the world’s second and fourth largest economies, at a time of rising geopolitical tensions and global economic challenges, highlighting their joint commitment to economic openness and rules-based trade.
India will grant the EU tariff reductions that none of its other trading partners have received. For example, tariffs on cars are gradually going down from 110% to as low as 10%, while they will be fully abolished for car parts after five to ten years. Tariffs ranging up to 44% on machinery, 22% on chemicals and 11% on pharmaceuticals will also be mostly eliminate. he agreement removes or reduces often prohibitive tariffs (over 36% on average) on EU exports of agri-food products, opening a massive market to European farmers. For example, Indian tariffs on wines will be cut from 150% to 75% at entry into force and eventually to levels as low as 20%, tariffs on olive oil will go down from 45% to 0% over five years, while processed agricultural products such as bread and confectionary will see tariffs of up to 50% eliminated.
Key Highlights
- One of India’s largest trade agreements by market size
- Tariff reductions on automobiles, pharmaceuticals, engineering goods, and services
Impact
- Increased India-EU bilateral trade
- Improved access to high-value European markets
- Regulatory cooperation benefiting long-term exporters
India–EFTA Trade Agreement (Switzerland, Norway, Iceland, Liechtenstein)
The India-EFTA Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024 and effective from October 1, 2025, is a landmark deal between India and Switzerland, Norway, Iceland, and Liechtenstein. It aims to boost two-way trade by reducing tariffs on 92.2% of EFTA exports to India and over 95% of India’s exports to EFTA, while securing a binding $100 billion investment commitment from EFTA countries into India over 15 years to create 1 million jobs.
Key Highlights
- Zero or reduced tariffs on most goods
- Long-term investment commitments in India
Impact
- Boost for Indian pharma, machinery, and specialty food exports
- Encouraged manufacturing investment and job creation
India–Oman Comprehensive Economic Partnership Agreement (CEPA):
The India–Oman Comprehensive Economic Partnership Agreement (CEPA) signed on December 18, 2025, provides a comprehensive framework to boost bilateral trade, covering goods, services, investment, and professional mobility. It grants India 100% duty-free access for 98.08% of tariff lines (covering 99.38% of exports).
Key Highlights
- Zero-duty access for Indian exports
- Strong focus on services, logistics, and labour mobility
Impact
- Strengthened India’s presence in the Gulf region
- Supported Indian exports of textiles, gems & jewellery, and pharmaceuticals
India–New Zealand Free Trade Agreement:
The India-New Zealand Free Trade Agreement (FTA), concluded in December 2025, marks a major milestone in bilateral relations, offering 100% duty-free access to Indian exports to New Zealand and a $20 billion FDI commitment to India over 15 years. The deal, covering services, investment, and mobility, aims to double bilateral trade to $5 billion in five years.
Key Highlights
- Tariff liberalisation on nearly 95% of traded goods
- Expanded cooperation in agriculture and services
Impact
- Better market access for Indian food products and manufactured goods
- Increased bilateral investment opportunities
Overall Impact of India’s Trade Strategy After Trump Tariffs
1. Trade Diversification
India reduced over-reliance on the US and China by expanding trade ties with Europe, the UK, the Gulf, and Pacific nations.
2. Export Growth
Lower tariffs helped Indian sectors like textiles, engineering, pharma, electronics, and agriculture remain competitive globally.
3. Investment & Manufacturing Boost
Trade deals aligned with Make in India and China+1 strategy, attracting global manufacturers.
4. Challenges
Some domestic sectors faced pressure due to increased competition, especially agriculture and small manufacturers.
Conclusion
India’s post-Trump tariff strategy focused on free trade agreements, market diversification, and global integration. These deals have strengthened India’s export resilience, improved investor confidence, and positioned the country as a key player in global supply chains—though balancing domestic interests remains a continuing challenge.