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India’s economic stability and political strength are attracting several countries to enhance bilateral trade and investment relations. Over a dozen nations, both small and large, are keen to deepen their economic ties with the nation. At the same time, India is actively negotiating free trade agreements (FTAs) with major economies such as the European Union and the United Kingdom, according to officials.
The Indian government, particularly the commerce ministry, has been actively engaging with various countries throughout March. Delegations from nations including Cuba, Egypt, Oman, Peru, Chile, Sri Lanka, New Zealand, Malaysia, Sweden, Norway, Hungary, Guatemala, the Slovak Republic, and Belgium have been involved in discussions either through virtual meetings or physical visits.
Bilateralism: A Key Tool in the New Global Order
Union Finance Minister Nirmala Sitharaman recently emphasized that bilateralism is emerging as a crucial strategy in the evolving global economic order, while multinational institutions are losing their influence. She stated, “I’m glad to say that the leadership of Prime Minister Modi is conscious that India should be in a reckoning place as this churning is happening and the global reset is happening.”
Officials believe that prolonged geopolitical uncertainties, disruptions in global supply chains, and the tariff wars initiated by the Trump administration have led many nations to seek stable and reliable trade partners like India.
Expanding India’s Trade Basket
An official noted that engaging with multiple countries will help India diversify its trade basket and explore newer markets. “We cannot only bank on the prospects of ongoing FTAs negotiations with major economies,” the official stated. Apart from its current negotiations with the UK, the EU, Oman, Peru, and Sri Lanka, India is working to enhance trade relationships with other nations as well.
Strengthening Economic Ties Across Continents
Cuba is among the latest countries to engage in trade discussions with India. On March 22, Commerce Minister Piyush Goyal met Cuban Deputy Prime Minister Eduardo Martinez Diaz to discuss potential collaboration in biotechnology and pharmaceuticals. “Spoke about potential collaboration in sectors like biotechnology & pharmaceutics. We also explored ways to further strengthen the India-Cuba trade & investment partnership and achieve mutual progress,” Goyal said in a post on X. Diaz highlighted the biopharmaceutical industry, renewable energy, and ICT as key sectors for cooperation.
Similarly, Goyal met Norway’s Foreign Minister Espen Barth Eide on March 18, where they reaffirmed their commitment to fostering high-level business engagements for mutual growth. On the same day, he also met Liechtenstein Foreign Minister Dominique Hasler and co-chaired a meeting with New Zealand’s Trade Minister Todd McClay to explore business opportunities in education, tourism, and technology.
India-New Zealand FTA in Progress
India and New Zealand recently announced that they have begun negotiations for a Free Trade Agreement (FTA). “As the two sides have launched FTA negotiations, I highlighted the huge opportunities for mutual cooperation across sectors, especially education, research, and innovation,” Goyal said after addressing the India-New Zealand Economic Forum in the presence of New Zealand Prime Minister Christopher Luxon.
Trade Talks with Malaysia, Hungary, and Slovakia
On March 18, Minister of State for Commerce Jitin Prasada held a bilateral meeting with Malaysian Deputy Trade Minister Liew Chin Tong to discuss strengthening trade relations, particularly in the semiconductor and services sectors.
The same day, Goyal met Hungarian Foreign and Trade Minister Péter Szijjártó to discuss increasing bilateral trade. A day earlier, he had an interaction with Slovak Republic Finance Minister Ladislav Kamenický to explore avenues for strengthening economic cooperation and expanding trade and investment opportunities.
Egypt and Sweden Show Interest
Egypt has also expressed its intent to enhance trade relations with India. On March 17, Goyal held discussions with Egyptian Minister of Investment and Foreign Trade Hassan El Khatib in New Delhi, focusing on expanding trade and investment prospects.
Additionally, the Minister of State met Sweden’s Foreign Affairs Minister Maria M Stenergard to discuss ways to deepen the India-Sweden trade and investment partnership.
Belgium’s Royal Visit
Earlier in March, Belgian Princess Astrid visited India and engaged in discussions on collaboration in key sectors such as trade, infrastructure, clean energy, and defense. The visit aimed at further deepening India-Belgium economic ties.
With continuous engagements and negotiations, India is solidifying its position as a reliable trade partner on the global stage. The government’s proactive approach in establishing bilateral agreements and expanding trade ties reflects its commitment to economic growth and global integration. As more countries seek to collaborate, India’s trade network is expected to grow, further strengthening its economic resilience in the face of global challenges.
