India trade pivot accelerated by Trump tariffs

FOR much of the last few decades, India has been widely perceived as a protectionist power. However, that may now be changing with the Modi government having recently concluded its third significant trade deal since the spring.

This hat-trick of significant economic agreements includes a major trade accord with the UK in May, followed by Oman and New Zealand earlier in December. This may showcase a shift towards agreements that prioritise high-income partners to deepen the integration of Indian industries into global supply chains, balancing domestic and global interests, while sending a signal of greater openness to foreign investors.

The most recent India deal, with New Zealand, aims to boost bilateral trade of around US$1.3 billion in the 2024-2025 financial year. India exported goods worth some US$711 million to New Zealand, while imports from New Zealand amounted to US$587 million.