NEW DELHI– India is pressing ahead with efforts to diversify its export markets amid uncertainty created by steep U.S. tariffs, signaling a strategic shift away from heavy reliance on the American market, according to a report cited by the South China Morning Post.
The report said India’s recently concluded free trade agreement with New Zealand, finalized in a record nine months toward the end of December, reflects New Delhi’s broader plan to expand export destinations beyond the United States. The approach is expected to gather further momentum in the period ahead.
According to the article, India has maintained a firm stance since U.S. President Donald Trump imposed punitive import tariffs of 50 percent on Indian goods last year, while still keeping channels open for negotiations. The agreement with New Zealand marked the third such trade pact in quick succession, following similar deals with the United Kingdom and Oman.
The United States remains India’s largest export market, accounting for about 18 percent of total goods exports, including products such as garments and leather goods. A large Indian diaspora in the U.S. has traditionally supported demand for these exports.
However, prospects for a bilateral trade agreement remain uncertain, with experts cited in the report expressing skepticism that Washington will substantially roll back its tariffs. India has taken a firm position against opening sensitive sectors such as agriculture and dairy to U.S. products.
Against this backdrop, the report noted that India is actively pursuing free trade agreements with other countries to reduce dependence on the U.S. market and cushion the impact of trade uncertainty under the Trump administration.
Commerce Secretary Rajesh Agrawal has said India’s strategy of diversifying trade across regions and sectors is yielding results, with export momentum expected to strengthen further in the coming months.
The article also highlighted India’s export resilience, noting that shipments reached a record $825.25 billion in the 2024–25 financial year. Growth has continued into the current fiscal year, with exports rising 5.43 percent to $562.13 billion during the April to November period. (Source: IANS)
