PM Modi said that New Delhi’s growing manufacturing base, expanding services sector and stronger MSMEs have empowered the country to conclude FTAs with 38 nations.
Prime Minister Narendra Modi has said that India now negotiates trade deals from a “position of strength” because of its growing manufacturing base, expanding services sector, and stronger MSMEs.
In an exclusive interview with news agency PTI, the Prime Minister said that political stability and political predictability have restored investor confidence in India, enabling the country to conclude free trade agreements (FTAs) with at least 38 nations.
“Political stability and political predictability have restored investor confidence in India,” he said, adding that the government’s consistent policy approach has strengthened India’s standing in global trade negotiations.
PM Modi further emphasised that the country’s FTAs are designed to expand market access for MSMEs, particularly in sectors like textiles, leather, chemicals, handicrafts and gems and jewellery. These agreements, he said, aim to create new opportunities for Indian exporters while deepening India’s integration with global supply chains.
He also lashed out at previous Congress-led UPA governments over their economic management, claiming that India was then unable to negotiate trade pacts with confidence. He said that little real substance was achieved at that time despite long negotiations.
“During UPA rule, talks would begin and then breakdown; a little real substance was achieved despite long negotiations,” he said.
PM Modi further highlighted that India’s goods exports have repeatedly broken earlier records in recent years, reflecting the country’s increasing competitiveness and integration with global markets.
He emphasised that while incentives and tariff preferences can catalyse growth, durable competitiveness must rest on innovation, efficiency and scale.
His remarks came following a spate of trade deals India has signed with multiple countries, including the United States and the European Union.
Trump and PM Modi announced the breakthrough trade deal following a telephonic conversation that effectively ended a period of severe trade tensions between Washington and New Delhi. The agreement slashes US tariffs on Indian goods from a punitive 50% down to 18% as Washington dropped an additional 25% punitive levy that had been imposed in August last year in response to India’s continued purchases of Russian oil, bringing the total effective tariff down from the previous 50%.
Last month, India and the European Union (EU) concluded negotiations of an EU-India free trade agreement, with European Commission President Ursula von der Leyen calling it the “mother of all trade deals.”
Von der Leyen described the proposed pact as a “historic” agreement that could reshape economic ties between India and the 27-nation European Union.
The European Union is currently India’s largest trading partner, with bilateral trade in goods valued at $135 billion in the 2023–24 financial year. Negotiations for the free trade agreement were first launched in 2007, stalled in 2013, and revived in 2022.
Additionally, New Delhi and London signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. Under the pact, 99% of Indian exports will enter the British market at zero duty, while India will reduce tariffs on British products such as cars and Scotch whisky.