India's Trade Diversification Strategy
Faced with the volatility of the US market, India's trade policy has increasingly emphasised geographic diversification of export destinations. India has concluded or is negotiating Free Trade Agreements with the UAE (CEPA, 2022), UK, EU, Australia (interim ECTA, 2022), GCC, Canada, and Israel. The India-UAE CEPA — which came into force in May 2022 — was India's first FTA with a major economy in a decade and served as a template for subsequent agreements. The "China Plus One" strategy pursued by global manufacturers has also benefited India in sectors like electronics and textiles.
- India-UAE CEPA: signed February 2022, in force May 2022 — eliminates/reduces tariffs on 80% of goods
- India-Australia ECTA: signed April 2022, in force December 2022 — interim agreement, broader CECA under negotiation
- India-UK FTA: under negotiation since January 2022; paused and resumed multiple times
- India-EU FTA: relaunched in 2022 after decade-long break; covers trade in goods, services, and investment
- India-GCC FTA: Terms of Reference signed February 5, 2026 — formal negotiations launched
- "China Plus One": manufacturing shift benefiting India especially in electronics (Apple supply chain) and pharmaceuticals
● Tracked since February 03, 2026 · last seen September 22, 2026 · updates as the daily brief publishes
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