India is quickly scaling its strategy of diversifying trade as US tariff pressures mount, and officers are already on an increased pace to finalize several free trade agreements and identify 50 priority alternative markets. Exports as merchandise have grown by the largest figure in 10 months at 7.29 percent to 37.24 billion in the month of July, increasing its trade deficit to 27.35 billion. New Delhi is attempting to defend the domestic industries against the escalating international trade tensions as well as policy shocks.
Amid the tariff tussle, India rushes into FTA talks
To insulate the domestic industries against global policy shocks, India is eyeing improving its export framework, as reported by the Outlook Business. New Delhi seeks to fast-track negotiations on trade agreements with various partners as it beefs up competitiveness and export diversification strategies amid a tense tariff war between India and the US.
One government official has already confirmed that negotiations with Oman have been completed, and they will sign an agreement on a mutually agreed date. With regard to the trade deal, we have asked the UK to accelerate and operationalize the trade deal. Negotiations with the EU are being fast-tracked, too, he added, as India makes frantic efforts to scare up alternate trade ties.
In its diversification bid, India is currently targeting about 50 nations among the 193 FTA and non-FTA nations that comprise over 90 percent of its export basket. They hardly get anything to import into the country, but not India. We will be, as a strategic theme, looking at export promotion in these countries as well,” added the official.
Seafood industry leads alternative market exploration
Indian seafood industries are actively trying to tap new markets such as Russia, the UK, EU as a measure against the effects of increased tariffs of the US. D V Swamy, chairman of the Marine Products Export Development Authority (MPEDA), said the industry has demonstrated several times now that it was resilient in its attack, and the hitch it was facing would not make a difference.
In this regard, Economic Times believes that the Centre has selected new focus markets where seafood products can be sold in Russia, the UK, the European Union, Norway, Switzerland, the Middle East, and South Korea.” We should not refer to it as an obstacle; rather, it is an opportunity. We grow through troubles, and we become better with each one of them,” Swamy said.
How MPEDA emphasizes market and product diversification
The chief of the MPEDA believed that it was time to diversify the markets as well as the seafood varieties produced, and he also opined that Ecuador can give India an added market challenge in the future. In 2024- 25, frozen shrimp in value and quantity (44 percent) topped the list of seafood exports by India, and in total, India exported 16,98,170 MT of seafood worth Rs 62,408.45 crore (USD 7.45 billion).
Negotiations on wages in bilateral trade agreements step up
The outlines of a potential bilateral trade agreement (BTA) between the two will become more decisive by the latter half of August, a commerce ministry official said. India is currently in an active state of negotiation with the US on the issue of trade. Negotiations are conducted at both negotiating teams and ministerial levels and within trade sectors.
This trade diversification plan by India is an active move in dealing with growing pressures to balance trade that is being experienced globally, and can be interpreted as a commitment by India to safeguard local industries and open channels to international markets. Using FTA talks as a fast-track mechanism, identification of 50 alternative markets, and sector-specific supports, as in the case of MPEDA’s seafood export diversification, India is making itself resilient to policy uncertainties.