India Makes History: Signs Five Major Trade Deals in a Year, Accounting for Over 50% of Global GDP

New Delhi: India has achieved a historic milestone in its economic history by signing five major trade deals in a single year, collectively accounting for over 50% of global GDP. The latest agreement with the United States marks a significant step in strengthening bilateral trade relations and comes after months of negotiation between the two countries.

Historic India-US Trade Deal
The U.S. President, Donald Trump, spoke with Prime Minister Narendra Modi and agreed to reduce tariffs on Indian goods from 25% to 18%. Additionally, the U.S. will lift the extra 25% tariff imposed on Russian oil imports, benefiting India’s trade landscape. The United States is India’s largest trading partner, accounting for around 20% of India’s total exports and 6.3% of imports in the 2025 fiscal year. The current bilateral trade stands at $191 billion, with plans to reach $500 billion by 2030.

India’s Fifth Trade Deal in a Year
In recent weeks, India also signed a Free Trade Agreement (FTA) with the European Union, marking a historic achievement as India now has trade agreements with two of the world’s largest economic blocs. Earlier in the year, India finalized trade deals with the United Kingdom, Oman, and New Zealand, completing a total of five significant agreements in 12 months.

Over 50% Share in Global GDP
Combined, India’s trade deals with the U.S., EU (27 countries), UK, Oman, and New Zealand represent approximately 50–55% of the global GDP. Even a partnership with just India and the European Union alone constitutes around 25% of global economic output. The U.S. deal also positions India more favorably compared to countries like Bangladesh (20%), Vietnam (20%), and Thailand (19%), which face higher American tariffs.

Strengthening India’s Role in Global Trade
The United States is the world’s largest economy, the European Union ranks second, and India is the fourth largest economy globally. The UK, Oman, and New Zealand further add to this influential trade network. Combined, these economies account for roughly 38–40% of global trade, solidifying India’s position in the international market.

Existing Trade Agreements
India already maintains regional and free trade agreements with several other nations, including Japan, South Korea, ASEAN countries, SAARC nations, Mauritius, the United Arab Emirates, and Australia, further expanding its global trade footprint.

This unprecedented series of trade deals marks a defining year for India’s economic diplomacy, positioning the country as a key player in global trade and strengthening its ties with some of the world’s most influential economies.