India’s negotiations on trade pacts with the United States and the European Union could wrap up soon, going by what finance minister Nirmala Sitharaman shared during the Exim Bank Trade Conclave 2025 held in New Delhi on June 25. She said discussions are “intense” and the government is keen on sealing more free trade agreements in the coming days.
While there’s no fixed timeline or confirmation, her remarks suggest that India may be closing in on key trade understandings with the two major partners. These talks are seen as critical, especially in a year where global demand has taken a knock due to tariff shocks, geopolitical frictions, and a general economic slowdown.
In a year most thought would be turbulent for exporters, India pulled off a surprise. According to Sitharaman, India’s total exports hit a record $825 billion—a 6% rise from the previous year. That’s a major jump compared to the $466 billion recorded in 2013–14.
She credited Indian exporters for holding their ground. “You’re really swimming against the current and still finding success,” she said. That grit, she suggested, has helped India navigate what she described as a “challenging global environment.”
The finance minister said exporters should expect continued backing from the government. With headwinds likely to persist, particularly due to trade uncertainties and weak global growth projections from bodies like the World Bank and OECD, she hinted that exporters won’t be left to fend for themselves.
Access to finance, structural reforms, and policy-level assistance are areas the government may continue to focus on. “All I can assure you is full support,” she said, underlining that the export sector needs reinforcement in tough times.
Sitharaman also flagged a deeper issue. Global trade, she said, is slowing down—and India isn’t immune to those tremors. International institutions have scaled down their forecasts, pointing to stagnation in cross-border commerce. That means even as India celebrates a record year, the road ahead may not be smooth.
This concern comes just as India is trying to build stronger trade links, especially with key economies like the US and EU. How much the upcoming trade agreements will help cushion that blow remains to be seen.
