India Diversifies Export Markets Amid US Trade Disputes

Strategic Insights -

India is accelerating its efforts to diversify its export markets after trade negotiations with the US hit a roadblock due to punitive tariffs and hostilities from the US administration. To counter this, New Delhi is aggressively pursuing multiple trade deals, including an early harvest trade agreement with the Eurasian Economic Union (E'U), trade pacts with the European Union (EU) and the South African Customs Union (SACU), a free trade agreement with Australia, and new accords with Qatar and Saudi Arabia. India is actively reviewing its existing trade agreements, including the Asean-India Trade in Goods Agreement (AITIGA), and aims to conclude the 13th round of India-EU FTA talks by the end of 2023.

Key Takeaways:

  • India is pursuing 8-10 trade agreements and reviewing existing ones, including the AITIGA.
  • The 13th round of India-EU FTA talks will be held in New Delhi, with senior officials visiting the EU to conclude the pact by the end of 2023.
  • India and South Africa have held talks on the SACU trade agreement, with India looking to conclude a customs union and a trade pact.
  • The EU is dominated by Russia, allowing India to negotiate separate service agreements.
  • India and the E'U have signed the terms of reference (ToR) to launch negotiations on an FTA, aiming to boost trade and investment.
  • The proposed FTA includes supporting MSMEs, expanding market access for Indian businesses, and diversifying export markets.
  • India's goods exports to Oman reached $4.42 billion in the April-February period of FY25, while imports were at $4.52 billion.
  • India's key imports from Oman are petroleum products and urea, accounting for over 70% of the import bill.
  • Investment flows between India and Oman have been robust, with numerous joint ventures established.
  • India is also actively pursuing trade negotiations with Sri Lanka, Peru, Chile, and New Zealand, as well as with Qatar and Saudi Arabia.

Statistics:

  • $4.42 billion: India's goods exports to Oman in the April-February period of FY25.
  • $4.52 billion: India's imports from Oman in the April-February period of FY25.
  • 70%: Share of petroleum products and urea in India's import bill from Oman.
  • 70 years: Diplomatic ties between India and Oman, being celebrated this year.
  • 13: Number of rounds of India-EU FTA talks to be held.
  • 2023: Target year for concluding the India-EU FTA talks.

Sources:

  • Times of India
  • ET (Economic Times)