India expands trade push as US tariff deal remains out of reach

India is moving rapidly to secure new trade agreements in an effort to protect exporters from steep US tariffs and reduce reliance on the American market, as efforts to strike a deal with Washington continue to stall.

Relations between the two countries deteriorated in August after President Donald Trump raised tariffs to 50 percent, threatening jobs and undermining India’s manufacturing ambitions. In response, New Delhi has accelerated trade diversification, signing or implementing four agreements in the past year, including a landmark deal with Britain.

Talks are underway with the EU, the Eurasian Economic Union, Mexico, Chile and Mercosur, aiming to expand India’s access to global markets. Analysts say 2025 has been among India’s busiest years for dealmaking, driven by the need to spread risk amid US pressure to curb Russian oil purchases.

New agreements could benefit labour-intensive sectors, including apparel and seafood, with the UK deal alone expected to double garment exports over three years. The potential EU accord is seen as even more consequential, though negotiations missed their 2025 deadline.

India is also pursuing smaller but strategically important pacts, including with Oman and New Zealand, to open Middle Eastern and Pacific markets and demonstrate flexibility in negotiations.

Exports jumped 19 percent in November 2025 after a dip in October, with gains led by electronics and marine products. But exporters warn that no combination of deals can make up for the United States, calling a US agreement essential even as India continues to cut back on Russian oil purchases.

Trade experts say diversification is now a necessity — not a choice — as India works to protect its most vulnerable sectors and reduce reliance on one major market.