India's Trade Deal Pipeline Could Nearly Triple Export Coverage

India's merchandise exports currently benefit from preferential trade agreements covering 27.4 per cent of shipments, a figure that could surge to 74.5 per cent once ongoing bilateral and multilateral negotiations reach completion, according to official assessments of the country's trade pipeline.

The potential expansion reflects India's intensified focus on negotiating free trade agreements across multiple regions and partner countries. These agreements typically reduce tariffs and other trade barriers, offering Indian exporters competitive advantages in key markets and potentially boosting overall export competitiveness.

The significant increase in coverage would position India's exports on more favorable terms in a broader range of destinations, particularly as the country seeks to diversify its trade relationships and reduce dependence on individual markets. However, the timeline for completing these negotiations remains fluid, with various agreements at different stages of finalization.

Indian policymakers view the expanded trade agreement framework as instrumental to supporting the country's export growth ambitions and integrating more deeply into regional supply chains across South and Southeast Asia, as well as with other major trading partners worldwide.