For decades, trade policy was mostly about lowering tariffs and signing free trade agreements (FTAs). Today, however, the global economy is being reshaped not only by tariffs but also by supply chains, critical minerals, technology partnerships, and geopolitical considerations. The era when countries traded simply because they were economically efficient is giving way to an era in which they trade with those they trust. The fact that India has secured multiple FTAs and Comprehensive Economic Partnership Agreements (CEPAs) with important trading partners, such as the United Arab Emirates (UAE), Australia, and the EFTA (European Free Trade Association) bloc, is highly commendable. Nevertheless, it is high time we push ourselves to the next level and adopt a more dynamic, resilient, and sustainable strategy beyond securing FTAs.
India’s trade policy is entering a new phase. While FTAs will continue to remain an important instrument for expanding market access, they are no longer sufficient in themselves. The real challenge lies in embedding Indian firms into global value chains, securing access to critical inputs, and building trusted partnerships in emerging technologies. Signing FTAs is only the first step in moving towards a resilient trade strategy.
