India Weighs Fresh Trade Strategy Ahead of Asian Summit, Keeps Door Open for Bilateral Free Trade Agreements

 India Weighs Fresh Trade Strategy Ahead of Asian Summit, Keeps Door Open for Bilateral Free Trade Agreements

By Sandip Singh Rajput | Source Reference: Reuters, BBC News, Al Jazeera, United Nations Reports, Jio News
(Published on [Amezing News And Free Tools Kit] https://www.amezingtoolkit.in)

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India is once again in the global spotlight as it prepares for the upcoming Asian Summit 2025, where trade, connectivity, and economic growth are expected to dominate the discussions. Over the past decade, India’s role in regional and global trade has undergone a major transformation. With supply chains shifting, geopolitical challenges rising, and new opportunities opening up in Asia, New Delhi is carefully recalibrating its trade strategy.

The central question policymakers face is: Should India rely more on regional trade blocs, or pursue flexible bilateral Free Trade Agreements (FTAs) with individual nations?

This article explores India’s fresh approach to trade, why it matters, and what the future may hold for one of the world’s fastest-growing economies.

A Turning Point in India’s Trade Policy

For years, India’s trade stance has been marked by caution. New Delhi walked away from the Regional Comprehensive Economic Partnership (RCEP) in 2019, fearing that cheap imports from China and other countries would overwhelm domestic industries. However, the global landscape has changed dramatically since then:

• Global supply chains are shifting post-pandemic.

• India’s economy is expanding at one of the fastest rates among major nations.

• Western companies are looking for alternatives to China, a trend often described as the “China+1” strategy.

In this context, India cannot afford to remain isolated from major trade agreements. At the same time, it wants to avoid trade imbalances that could harm local industries. This delicate balancing act has shaped India’s new trade strategy for 2025 and beyond.

Why Bilateral Free Trade Agreements Are Back in Focus

India has realized that bilateral FTAs offer greater flexibility compared to large regional blocs. Instead of negotiating with 15 or 20 countries at once, New Delhi can strike deals with individual partners that suit its economic and strategic interests.

Recent examples include:

• India–UAE Comprehensive Economic Partnership Agreement (CEPA): Boosted bilateral trade to over $85 billion in just one year.

• India–Australia Economic Cooperation and Trade Agreement (ECTA): Opened new doors for Indian textiles, pharmaceuticals, and IT services.

• Ongoing negotiations with the UK, European Union, and Canada show India’s ambition to expand its trade footprint in both developed and emerging markets.

By keeping the door open for bilateral FTAs, India hopes to:

• Increase exports of key sectors like textiles, IT, pharma, and agriculture.

• Attract foreign investment by offering preferential trade terms.

• Strengthen supply chain resilience by diversifying trade partners.

Asian Summit 2025: Why It Matters for India

The upcoming Asian Summit 2025 is more than just a diplomatic gathering. It is a stage where the region’s largest economies will decide how to shape trade rules for the next decade.

For India, the summit is an opportunity to:

1. Show leadership in shaping a fair and balanced regional trade order.

2. Push for digital trade, green energy, and technology cooperation, areas where India has a strong advantage.

3. Counter China’s growing influence in regional trade negotiations.

4. Build stronger ties with ASEAN nations, many of which see India as a reliable partner for balancing power in Asia.

In short, the summit gives India a chance to position itself not just as a participant, but as a rule-maker in Asia’s trade architecture.

The Role of Technology and Digital Trade

One of the biggest trends shaping global trade today is the rise of digital commerce. With e-commerce, fintech, and digital services becoming central to the economy, India is pushing for agreements that include digital trade rules.

India’s booming IT sector, growing fintech ecosystem, and government initiatives like Digital India make it a strong contender in this field. By ensuring that data security, cross-border e-payments, and digital infrastructure are part of FTAs, India can expand its digital exports and strengthen its global presence.

Challenges Ahead

While the opportunities are promising, India’s path is not without challenges.

• Domestic industry concerns: Many small businesses fear that opening up markets will expose them to tough competition.

• Agriculture sensitivity: Farmers’ groups worry about cheaper imports affecting their livelihoods.

• Negotiation delays: FTAs often take years to finalize due to complex rules of origin, tariffs, and labor standards.

• Geopolitical risks: Rising tensions between major powers like the US and China could complicate trade flows.

India’s policymakers must carefully address these issues while ensuring that its Make in India and Atmanirbhar Bharat (self-reliant India) initiatives are not undermined.

Key Sectors to Watch

As India reshapes its trade policy, certain sectors are expected to benefit more than others:

• Pharmaceuticals: India is a global leader in generic medicines, and FTAs can help expand market access.

• Information Technology (IT) and Services: Digital trade agreements will give India’s IT giants a bigger global platform.

• Green Energy: Solar panels, electric vehicles, and renewable technology exports are set to rise.

• Agriculture and Food Processing: With proper safeguards, Indian farmers can access new international markets.

Global Reactions to India’s Strategy

India’s cautious yet ambitious trade policy has drawn mixed responses.

• Western partners like the UK, US, and EU see India as a valuable counterbalance to China and are eager to deepen trade ties.

• ASEAN nations welcome India’s renewed engagement, but also want quicker commitments.

• China, meanwhile, views India’s growing trade network with suspicion, especially as New Delhi strengthens its role in the Indo-Pacific Economic Framework (IPEF).

These reactions highlight India’s growing weight in the global economy and the expectation that it will play a central role in shaping future trade flows.

The Road Ahead: India’s Trade Vision 2030

Looking beyond the Asian Summit 2025, India’s trade vision is becoming clearer. By 2030, India aims to:

• Become a $5 trillion economy with strong export-led growth.

• Establish itself as a manufacturing hub through initiatives like Make in India.

• Sign strategic FTAs with major economies while maintaining autonomy in policymaking.

• Lead in digital trade and green technology exports.

• Play a proactive role in regional and global trade governance.

This vision is ambitious but achievable if India balances openness with protection, and global integration with domestic growth priorities.

The End

India’s fresh trade strategy ahead of the Asian Summit 2025 reflects both opportunity and caution. By keeping the door open for bilateral Free Trade Agreements, India is ensuring that it remains flexible, competitive, and aligned with its national interests.

The world is watching closely. Will India step forward as a global trade leader, or will it remain on the sidelines of major trade blocs? The decisions taken in the coming months will shape not just India’s economy, but also the future of Asian trade and global supply chains.

One thing is clear: India is no longer a passive player. It is now an active architect of global trade strategy, with the potential to redefine the rules of the game in Asia and beyond.

✍️ Author Bio

Sandip Singh Rajput is the founder and editor of Amezing News And Free Tools Kit, a platform dedicated to transparent global reporting and educational innovation. With a focus on factual storytelling and simple language journalism, he bridges the gap between complex world events and everyday understanding.