India in talks with 20 more countries to open market access: Piyush Goyal
Commerce and Industry Minister Piyush Goyal, speaking at a business event in Coimbatore on April 10, 2026, announced that India is in active discussions with at least 20 more countries to open market access through trade agreements.
Goyal stated the government's trade strategy has focused on agreements with developed countries where per capita income is high and industries do not directly compete with Indian businesses — reducing the risk of import surges harming domestic industries.
India has signed nine free trade agreements (FTAs) over the last three-and-a-half years, providing preferential access to 38 developed nations.
Two-thirds of global trade is now open to Indian entrepreneurs seeking preferential market access, according to Goyal.
The new talks include the Gulf Cooperation Council (GCC), Eurasian region countries, and Israel.
Goyal noted that to support MSME growth in global markets, the government has revised the MSME definition to exclude export turnover from turnover-based classification — incentivising smaller businesses to grow internationally without losing MSME status.
The India-EU Free Trade Agreement was concluded on January 27, 2026, giving India access to 99% of EU trade value — its largest-ever trade deal.
India's FTA Strategy — Recent History and Shift
India historically maintained a cautious approach to FTAs, negotiating relatively few and viewing many as harmful to domestic industry. This changed significantly after 2022, when the government adopted an assertive FTA strategy: concluding agreements with UAE (CEPA, 2022), Australia (ECTA, 2022), UK (FTA, 2025), EFTA (Trade and Economic Partnership Agreement, 2024), and the EU (concluded January 2026). These agreements together represent a strategic reorientation toward high-income, high-consumption markets where Indian goods can compete.
Key Details
- UAE CEPA (Comprehensive Economic Partnership Agreement): signed February 2022; India's first modern CEPA with a Middle Eastern nation
- Australia ECTA (Economic Cooperation and Trade Agreement): signed April 2022
- EFTA TEPA (Trade and Economic Partnership Agreement): signed March 2024; ₹1 lakh crore FDI commitment from EFTA nations
- UK FTA: concluded May 2025; 99% tariff-free access; bilateral trade target: $100 billion by 2030
- EU FTA: concluded January 27, 2026; India's 22nd FTA; access to 99% of EU exports by value
- GCC FTA: negotiations ongoing; key given 4–5 million Indian diaspora in Gulf states
The 20-country pipeline represents the next wave of this strategy — Goyal's reference to "developed country" focus signals India is deliberately targeting high-income markets (Europe, Gulf, Eurasia) rather than lower-income neighbours where import competition with Indian SMEs would be more intense.
Free Trade Agreements — Key Concepts
An FTA (Free Trade Agreement) eliminates or reduces tariffs and trade barriers between signatory countries. A Comprehensive Economic Partnership Agreement (CEPA) is a broader version covering goods, services, investment, and intellectual property. A Preferential Trade Agreement (PTA) offers reduced tariffs on selected goods. FTAs can boost exports (market access) but also increase import competition. India has been selective — emphasising goods export access, while being cautious on services liberalisation and investment rules that could restrict policy space.
Key Details
- FTA: eliminates tariffs on goods traded between member countries
- CEPA: broader than FTA — covers goods, services, investment, IP
- PTA: partial tariff preferences; more limited in scope
- Rules of Origin: FTAs include rules to prevent third-country goods from using FTA preferences through re-routing
- India's FTA count: 22 (as of early 2026, post-EU FTA conclusion)
- India is one of the few major economies not party to RCEP (withdrew in 2019 citing concerns about China dumping and domestic industry impact)
India's decision to exit RCEP in 2019 was driven precisely by the concern Goyal articulated — avoiding FTAs where partners' industries directly compete with Indian producers. The 20-country pipeline is designed around a similar filter: high per-capita income partners where India's competitive advantage (labour-intensive manufacturing, IT, pharmaceuticals) can be monetised.
India's MSME Sector and Export Promotion
MSMEs (Micro, Small and Medium Enterprises) contribute approximately 30% of India's GDP, 45% of manufacturing output, and 49% of India's exports. The MSME classification is based on investment in plant/machinery and annual turnover. The government's revision to exclude export turnover from MSME classification is significant — previously, a growing exporter could lose MSME benefits (credit schemes, priority sector lending, government procurement preferences) even if its domestic size remained small.
Key Details
- MSMEs: ~6.3 crore enterprises in India; employ ~11 crore people
- MSME export share: ~49% of India's total merchandise exports
- MSME classification (revised): based on investment + turnover (export turnover now excluded)
- Key MSME export sectors: textiles, leather, gems and jewellery, engineering goods, pharmaceuticals
- Government MSME schemes: MUDRA loans, Emergency Credit Line Guarantee Scheme (ECLGS), ZED certification
By excluding export turnover from MSME classification, the government allows export-oriented small businesses to grow internationally without losing access to MSME-specific credit, procurement, and support schemes — directly supporting Goyal's vision of Indian SMEs capturing preferential access in the 20+ new markets.
- India in active trade talks with 20+ additional countries (announced April 10, 2026, Coimbatore)
- FTAs signed in last 3.5 years: 9 agreements covering 38 developed nations
- Two-thirds of global trade now open to Indian exporters on preferential terms
- Ongoing talks: GCC, Eurasian region, Israel
- India-EU FTA concluded: January 27, 2026 — India's 22nd FTA; covers 99% of EU trade value
- India-UK FTA: May 2025; bilateral trade target $100 billion by 2030
- MSME revision: export turnover excluded from classification to encourage export growth
- MSMEs: ~6.3 crore enterprises; ~49% of India's merchandise exports
- India's trade strategy focus: developed, high per-capita income markets where Indian goods don't face domestic competition