India–U.S. trade pact soon; govt targeting more FTAs: FM Sitharaman

Amidst the ongoing trade negotiation between India and the U.S., Finance Minister Nirmala Sitharaman today said that the trade pact with the U.S. and the European Union is likely to be concluded soon. FM assured the exporters of every possible government support amid the challenging global environment.

“Intense trade negotiations going on with the US and the European Union and should come to a conclusion sooner. Emphasis is being made on getting more free trade agreements getting signed,” Sitharaman said at Exim Bank’s Trade Conclave 2025.

The Finance Minister pointed out that India's total exports have touched an all-time high of $825 billion at 6% growth over the previous year, despite a challenging global environment. “This is a significant leap of $466 billion over 2013-14,” she added.

“Global growth and trade have suffered in the last few years. OECD has projected a 20 basis points drop, and World Bank has estimated 40 bps drop in global growth this year. World does not seem to be in a mood to go along with exports,” Sitharaman said.

“Despite that, Indian exporters are still growing and finding success. Indian exporters swimming against the current and succeeding as well,” she said, assuring full government support to the exporters amid the global uncertainties.

The FM pointed out that despite the one or the other challenge every year in the last year the Indian exporters have performed well. “From COVID in 2020 to Russia-Ukraine war in 2022 and the disturbances due to Hamas in 2023 and the recent tariff war, we have had serious challenges every year to global trade,” she said, while pointing out that the Indian exporters have upped the game with foraying into new markets and value added high tech products. “While global exports grew at 4%, India's exporters managed a 6.3% growth,” she added.

“Tech-infused high-end products are getting exported today. India is not just exporting bulk raw goods or commodities. Today, high standard well engineered products are being exported. Indian exporters have also been finding new markets,” she added.

Sitharaman pointed out that the government has taken five major steps to support exporters. “The first one is transport and logistics upgrade, which improves supply chain efficiency. Secondly, govt has provided targeted support to MSMEs. Third of the five is trade finance access,” she said.

“The fourth initiative is the trade cluster approach. PLI supported exports have surpassed ₹5.31 lakh crore ($62 billion). The items include large scale electronics, pharma, food processing, telecom and network products,” she said, adding the fifth one being the focus on free trade agreements.