Free Trade Agreements (FTAs) are helping India compete more with the USA, China, and Brazil, according to an official from the Commerce Ministry.

APEDA stated that India will gain ground in processed food exports compared to the USA, China, and Thailand. India will also become more competitive than the USA, China, Thailand, and Vietnam in bakery items, added the official.

India will have a competitive advantage over Brazil in fresh grape exports. India will also match the top exporters such as Egypt and South Africa. India will compete with Turkey, Pakistan, South Africa, and China in preserved vegetables like fruits and nuts.

In fresh and chilled vegetables, India will become more competitive with the US, Brazil, Thailand and China. It will India will gain a competitive advantage in sauces and prepared sauces and a better position against the USA, Japan, China, Thailand, and Malaysia.

The Commerce Ministry stated that India’s exports of goods and services hit a record high of USD 825 billion in 2024–25. This rise came from a strong surge in service shipments, which reached USD 386.5 billion in the last fiscal year, despite global trade headwinds.

The government is aiming to achieve USD 1 billion in exports from the Indian AlcoBev (alcoholic beverage) industry by 2030.

A Commerce Ministry official stated, “Opening AlcoBev and the Auto market for the UK is a pragmatic approach. After taking all factors into consideration, we have concluded that this will not hurt the Indian industry.”

Indian exporters now want more access in the UK and are very excited because “our own whiskeys, our spirits, our gins are becoming very hot export products,” the official added. India imports whiskey worth around USD 500–600 million annually.

The official said that the FTA with the UK is a “totally job-oriented deal.” He said trade between India and the UK will not only double by 2030, but will also create millions of jobs and increase India’s overall exports to the UK.

According to a report by the Bank of Baroda, the recently concluded Free Trade Agreement between India and the United Kingdom is expected to benefit both nations economically. It could also pave the way for similar agreements with other countries, such as the United States and the European Union.

The report stated, “While the UK per se is not a very significant trading partner for India, this paves the way for similar agreements with other countries like the USA and the EU and hence, augurs well for India.”

India has signed trade deals with Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, Korea, Japan, Australia, the UAE, and Mauritius. India has also signed agreements with the ASEAN bloc (10 Southeast Asian countries) and the EFTA bloc (Iceland, Liechtenstein, Norway, and Switzerland).

India is currently negotiating trade agreements with several trading partners. These include the US, Oman, the European Union (EU), Peru and Israel. Talks with Canada for a similar agreement were paused due to certain political issues.

A free trade agreement is a deal between two or more countries to either end or reduce customs duties on the maximum number of goods traded between them. It also cuts non-tariff barriers on significant imports, and relaxes rules to promote service exports and bilateral investment.

India and the UK have successfully concluded a comprehensive and mutually beneficial Free Trade Agreement. They also signed a Double Contribution Convention under this historic deal. This agreement will open up large export opportunities for India’s labour-intensive sectors.