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When India reached a free-trade agreement with New Zealand in a record time of nine months towards the end of last year, the speedy conclusion signalled New Delhi’s intention to diversify away from the United States – an approach that is only expected to gather pace.
Ever since US President Donald Trump imposed import tariffs of 50 per cent on India last year, among the highest levied by Washington, the South Asian nation has maintained a resolute approach to the punitive levies, even as it has kept the door open to negotiations.
After concluding the trade deal with New Zealand last month, Indian Commerce Secretary Rajesh Agrawal said in a social media post that it was the third such arrangement signed last year, following earlier pacts with the United Kingdom and Oman.
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With discontent simmering over the steep US tariffs, the spate of new trade agreements drew praise at home, with internet users hailing India’s “productive year” and calling its trade signings a “master stroke”.
The US is India’s largest export market, receiving about 18 per cent of its total goods exports, including items such as garments and leather products, with a vast diaspora readily snapping up products shipped from their homeland.
While it remains unclear whether the two countries can negotiate a trade deal given India’s firm position on opening sensitive sectors such as agriculture and dairy to US products, experts are sceptical that Washington will significantly roll back its tariffs.