India Pivots Trade Strategy: Prioritises Partnerships with Non-Competitor Countries
SDG 17: Partnerships for the Goals | SDG 8: Decent Work and Economic Growth
Institutions: Ministry of Commerce & Industry
At the 105th AGM of ASSOCHAM on 17 October 2025, Union Commerce Minister Piyush Goyal declared that India now negotiates trade agreements from a “position of strength.” He said trade deals will increasingly be struck with countries that are not direct competitors, in order to ensure balanced benefits and protect domestic industry.
He highlighted that India’s foreign exchange reserves (approx. USD 700 bn) remain robust and underscored the importance of supply chain resilience, domestic capacity, and export promotion, especially for MSMEs and startups. The minister noted that the days of India negotiating from a weaker position are over and stressed a future trade agenda built on industrial collaboration, technological partnerships, and strategic alignment.
This shift signals India’s maturity in external economic diplomacy: rather than entering any FTA, it aims for strategic, calibrated trade pacts that preserve domestic value chains while enhancing export access. For policy, it suggests a future where trade negotiations will be sectorally selective, conditioned on supply chain security, domestic scalability, and reciprocity. It also raises the bar for regulatory preparedness (standards, certification, quality) and investment facilitation aligned with such pacts.
What does “non-competitor trade partnerships” mean?
It refers to trade agreements with countries whose industries do not directly threaten India’s key sectors, reducing the risk of job loss or import flooding, while enabling complementary growth (e.g., inputs, technology, services).
Relevant Question for Policy Stakeholders:
How can India design a trade pact evaluation framework that weighs not just export potential but competitive threat, domestic absorption capacity, and resilience against external shocks?
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