India Aims for 75 Percent of Global Trade Coverage Through Expanding Free Trade Agreements

Commerce and Industry Minister Piyush Goyal has outlined India’s ambitious push to expand its network of free trade agreements, stating that ongoing negotiations with eight to nine additional groups of countries and individual nations could help the country secure preferential market access covering around 75 percent of global trade. The remarks were delivered on August 24, 2026, in Tokyo during a major business engagement with Indian and Japanese industry leaders.

Piyush Goyal says India is negotiating another 8-9 FTAs | Business Today

Expanding Preferential Market Access

Goyal explained that India has already signed nine free trade agreements over the past four years. These pacts cover economies with a combined GDP of approximately USD 60 trillion and include 38 developed countries. Earlier agreements with Japan, South Korea, and the ASEAN region have added access to markets worth another USD 10 trillion. Taken together, India currently enjoys preferential market access to economies representing about USD 70 trillion.

The minister noted that negotiations currently underway with at least eight or nine more partners would add a further USD 15 trillion in economic coverage. Once completed, these agreements are expected to bring India’s overall FTA network to a point where it covers roughly three-quarters of global trade. He emphasised that this expansion would help position India as a trusted partner within global value chains, leveraging the country’s large domestic market while opening greater opportunities for Indian exporters and investors.

Recent Agreements and Implementation Progress

Among the agreements concluded in recent years are those with the United Arab Emirates, Australia, Mauritius, Oman, the European Free Trade Association, the United Kingdom, New Zealand, and the European Union. A bilateral trade arrangement with the United States has also advanced. Officials have indicated that the nine recent agreements are expected to become fully operational within about ten months, with several substantial pacts coming into force in the near term.

These deals are seen as opening significant export opportunities for India’s manufacturing sector while encouraging greater investment inflows and deeper regulatory cooperation with partner countries. Analysts have estimated that the expanded network could unlock substantial market potential for Indian goods and services across a wide range of sectors.

Current Negotiations

Beyond the recently concluded pacts, India continues active discussions with several partners. Talks with Canada are described as being at an advanced stage. Negotiations are also progressing with Israel, the Gulf Cooperation Council, the South African Customs Union, the Eurasian Economic Union, Chile, Peru, and other partners. Terms of reference have been signed for a number of these engagements, providing a structured framework for further rounds of discussions. The overall approach seeks balanced outcomes that expand opportunities in goods, services, and investment while safeguarding sensitive domestic sectors.

Deepening Economic Engagement with Japan

Goyal’s comments came during a four-day visit to Japan from August 24 to 27, 2026, where he is leading a business delegation of more than 200 representatives. The group includes participants from manufacturing, semiconductors, clean energy, steel, automotive, financial services, healthcare, and start-ups. The itinerary covers Tokyo, Nagoya, and Osaka, with meetings planned with major Japanese companies, a roundtable with the Japan Business Federation, focused sessions on semiconductors and artificial intelligence, and bilateral discussions with Japan’s Minister of Economy, Trade and Industry.

The visit builds on Japan’s stated intention to invest 10 trillion yen in India over the coming decade. Bilateral trade between the two countries reached approximately USD 27.5 billion in 2025-26. Goyal highlighted India’s strengths, including a young workforce and large domestic market, while encouraging Japanese firms to expand their presence in manufacturing, data centres, artificial intelligence, and related areas. The goal is to foster more balanced trade and deeper industrial collaboration between the two economies.

Broader Economic Significance

India’s sustained focus on free trade agreements forms part of a wider effort to integrate more closely into resilient global supply chains, diversify export markets, and attract long-term investment. By combining improved market access with partnerships in technology and manufacturing, the strategy aims to support higher export growth, job creation, and industrial competitiveness. The current phase of negotiations and implementation reflects a systematic approach to expanding India’s role in the international trading system.

The MGMM Outlook 

India’s expanding network of free trade agreements reflects a significant step toward strengthening its position in the global economy. With negotiations underway across multiple regions and recently concluded trade pacts with major economies, the country is steadily widening market access for its businesses while creating new opportunities for exports, manufacturing, investment, and technology partnerships. The objective of covering nearly 75 percent of global trade demonstrates a long-term strategy focused on deeper international economic integration.

The growing economic engagement with countries such as Japan further highlights India’s emergence as a preferred destination for industrial collaboration, semiconductors, clean energy, and advanced manufacturing. As these agreements become operational, they are expected to enhance India’s competitiveness in global value chains, support job creation, and provide Indian enterprises with greater access to some of the world’s largest consumer and investment markets.

(Sources: Business Today, Firstpost, The Hindu BusinessLine)