On 27^th April 2026, India and New Zealand signed a free trade agreement (FTA). Of late, India has been aggressively utilising FTAs as a cornerstone for its goal of becoming a developed nation by 2047. By refining its negotiating position, India is accelerating its integration into the global trade landscape.

Four-Pronged Strategy

• India’s approach is highly intentional:
  • Targeting developed economies for market access;
  • Engaging with RCEP members (barring China);
  • Focusing on key regional blocks like the Gulf and Europe; and
  • Fostering bilateral ties with strategic partners to bolster security and political relationships.

Domestic Reforms and Infrastructure

• While regional infrastructure corridors are being expeditiously developed, the short-term focus remains on domestic structural changes.
• Following the 2025 tax and labour reforms, the 2026 Union Budget also aims to simplify tariff structures to improve the ease of doing business and ensure competitiveness.

Advantages Galore

India’s strategic pursuit of FTAs offers a multitude of advantages that go beyond simple commerce. By securing deep access to developed markets and key global blocks, India is positioning itself as a central hub in the global supply chain.