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India-U.S. relations have deteriorated, prompting India to rapidly diversify its trade partnerships, signing agreements with the United Kingdom and considering negotiations with the EU and other major economies.

Raluca Ioana Draghici
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11 January 2026, 06:20
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The relations between Washington and New Delhi deteriorated significantly in August, when President Donald Trump raised tariffs to 50%, affecting jobs in India and its ambition to become a manufacturing and export power. This pressure has prompted India to quickly diversify its markets, signing or operationalizing four trade agreements in the past year, including a major pact with the United Kingdom. India is currently in negotiations with the European Union, the Eurasian Economic Union, Mexico, Chile, and the Mercosur bloc from South America, aiming for either new agreements or the expansion of existing ones.

Experts, such as Ajay Srivastava from GTRI, emphasize that these trade agreements are essential for risk distribution and do not represent a deviation from relations with Washington. The tariffs imposed by the U.S., targeting Russian oil purchases, have accelerated India's desire to develop other markets. The trade agreements will support sectors affected by tariffs, such as the clothing industry, where it is estimated that the agreement with the United Kingdom could double exports in the next three years. Additionally, a potential agreement with the European Union could be the largest of its kind in the world, although negotiations face challenges.

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India caută să încheie noi acorduri comerciale după deteriorarea relațiilor cu SUA
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France24
India eyes new markets with US trade deal limbo

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