India is accelerating negotiations for Free Trade Agreements (FTAs) with the European Union, Chile, and New Zealand, aiming to close the deals by the end of this year. The move seeks to diversify exports, especially in labour-intensive sectors, and secure rare-earth mineral supplies to strengthen manufacturing and clean energy industries.

BulletsIn

•  India fast-tracking FTA talks with EU, Chile, and New Zealand; conclusion expected by end-2025.
•  Aim to boost export diversification and secure rare-earth mineral supplies for tech and energy needs.
•  EU deal could be signed by November, pending consensus on key tariff issues.
•  EU pushing for tariff cuts on automobiles, whisky, and wine exports to India.
•  India currently levies 150% duty on wines, 110% on luxury cars, and 70% on mid-range cars.
•  Talks with Chile and New Zealand progressing faster for quick diversification benefits.
•  Focus sectors: apparel, footwear, and labour-intensive industries hit by US tariffs.
•  FTA seen as part of India’s strategy to expand export markets beyond the US and China.
•  Commerce Ministry prioritising balanced deals protecting domestic producers and MSMEs.
•  Expected to strengthen India’s global trade footprint and reduce import dependence.