Story perspectives

India Pursues Trade Deals with EU and U.S.

2/14/2026

Summary

Story summary

India is pursuing trade agreements, including a free trade agreement with the European Union (EU) and a framework deal with the United States (U.S.) to cut tariffs.
The move signals readiness for market-opening deals.
Discussions reflect India's stance after withdrawing from the ASEAN-backed Regional Comprehensive Economic Partnership (RCEP) and ties with China.
Experts say quality trade accords attract investment; Ambassador Jawed Ashraf notes this on the Ravi Velloor podcast.

History

Historical Context

In 2020, India withdrew from the RCEP, a significant trade agreement involving 15 Asia-Pacific nations, aiming to protect local industries. The Indian government, led by Prime Minister Narendra Modi, prioritized domestic economic interests over potential tariff reductions. This decision has prompted India to seek new trade agreements with the EU and U.S., reflecting a strategic pivot in its trade policy. The long-term implication may be a more insulated economy, potentially affecting foreign investment and regional trade dynamics.

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Story summary

India is pursuing trade agreements, including a free trade agreement with the European Union (EU) and a framework deal with the United States (U.S.) to cut tariffs.
The move signals readiness for market-opening deals.
Discussions reflect India's stance after withdrawing from the ASEAN-backed Regional Comprehensive Economic Partnership (RCEP) and ties with China.
Experts say quality trade accords attract investment; Ambassador Jawed Ashraf notes this on the Ravi Velloor podcast.

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