India Expands Trade Ties for 2047 Economy Goal

India has expanded its trade agreements with the European Union, New Zealand, the European Free Trade Association, Canada and the United States in 2026. These agreements form part of India’s trade strategy linked with the goal of building a $30 trillion economy by 2047.

Free Trade Agreement

A Free Trade Agreement (FTA) is a treaty between two or more economies that reduces or removes customs duties on goods and, in some cases, eases rules on services, investment and market access. India and the European Union signed an FTA on 27 January 2026 after nearly two decades of negotiations. The India-EU FTA gives immediate duty-free access to 70.4% of Indian tariff lines. It covers more than 90.7% of India’s export value to the European Union, and full implementation is planned to raise duty-free access to 99%.

Recent Bilateral Trade Agreements

India and New Zealand signed an FTA on 27 April 2026. The agreement gives Indian exporters full duty-free access to the New Zealand market, while India will liberalise tariffs on about 70% of tariff lines covering 95% of bilateral trade. The India-European Free Trade Association trade agreement includes Switzerland, Norway, Iceland and Liechtenstein. The bloc has committed to facilitate 100 billion in investments in India over 15 years and to create one million direct jobs. India and Canada launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) on 2 March 2026. The two sides have set a target of US50 billion in bilateral trade by 2030.

Trade Targets and Export Data

A Comprehensive Economic Partnership Agreement is a wider trade pact than a standard FTA and can cover goods, services, investment, intellectual property and regulatory cooperation. India’s total exports of merchandise and services reached 860.09 billion in financial year 2025-26, with 4.22% growth. India’s imports rose by 6.47% to about 970 billion in 2025-26, and the trade deficit stood at 119.30 billion. Merchandise exports in April 2026 rose by nearly 14% to 43.6 billion.

Important Facts for Exams

• India signed nine free trade agreements in the past three to three-and-a-half years, covering 38 countries.
• The European Free Trade Association consists of Switzerland, Norway, Iceland and Liechtenstein.
• India’s export target for 2047 is $10 trillion.
• The government has projected a $30-35 trillion economy for India by 2047.

US-India Trade Deal

A US-India trade deal announced on 2 February 2026 reduced US tariffs on Indian goods from 50% to 18%. India also committed to a $500 billion “Buy American” programme and to stop imports of Russian oil under the terms announced in the deal.