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India Eyes New Markets with US Trade Deal Limbo

India signed four trade agreements last year and is negotiating with multiple partners to reduce reliance on US markets after a 50% tariff hike, experts said.

  • India is aggressively seeking trade deals to open markets and soften the blow of steep US tariffs, having signed or operationalised four agreements last year including a major pact with Britain.
  • Relations with Washington deteriorated after a tariff spike as President Donald Trump raised tariffs to 50 percent, aimed at deterring India's Russian oil purchases, which fell from 1.8 million to 1.2 million barrels daily, Kpler data shows.
  • The New Zealand FTA secured $20 billion in foreign investment and increased visa access despite little export growth, while India's UK deal could double garment exports over three years, Apparel Export Promotion Council said.
  • Although talks missed an end-of-2025 deadline, New Delhi negotiators remain optimistic as European Commission President Ursula von der Leyen calls it `the "largest deal of this kind anywhere in the world'` and sector sources warn alternatives can't fully replace the US market.
  • Ajay Srivastava, Global Trade Research Initiative, says success would spread India’s trade across major economies, but sector representatives note fully replacing the US remains difficult.
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India eyes new markets with US trade deal limbo

India is aggressively seeking trade deals to open markets for exporters and soften the blow of steep US tariffs, as efforts to secure an agreement with Washington remain elusive.

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Live Mint broke the news in New Delhi, India on Friday, January 9, 2026.
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