Union Finance Minister Nirmala Sitharaman on Sunday, 26 July 2026 highlighted India's expanding web of bilateral trade agreements, saying each deal reflects the scale of the country's market, its economic potential, and global trust in the capabilities of 140 crore Indians. Speaking at the NDTV Profit Business Leadership Awards 2026, she outlined how these pacts are designed to benefit farmers, small businesses, and exporters of traditional products.

Context

Sitharaman described India's trade agreements as instruments of inclusion, not just commerce. 'These Agreements are for farmers whose products now have access to the developed world,' she said, adding that they extend new competitiveness to 'entrepreneurs, women-led MSMEs, garment exporters, leather and handicrafts.' She also specifically named AYUSH — India's system of traditional wellness including Ayurveda, Yoga, Unani, Siddha, and Homeopathy — as a direct beneficiary of improved market access.

The remarks come as India's bilateral trade architecture has grown substantially. The India-UAE Comprehensive Economic Partnership Agreement, signed in 2022, opened duty-free channels for several agricultural and textile products. The India-Australia Economic Cooperation and Trade Agreement, also concluded in 2022, covers goods, services, and investment with phased tariff reductions.

Policy Backdrop

India's pivot toward tailored bilateral pacts reflects a broader strategic shift away from stalled multilateral trade negotiations. Each agreement is structured to leverage India's large domestic market while securing reciprocal access for labour-intensive and heritage sectors — areas where Indian producers hold comparative advantages but have historically faced tariff and non-tariff barriers in developed economies.

The Production Linked Incentive (PLI) scheme, launched in 2020, has run parallel to this diplomatic push, targeting competitiveness in textiles, leather, food processing, and wellness products. Together, the PLI framework and bilateral agreements form a two-track approach: one builds supply-side capacity domestically, the other secures demand-side access internationally.

Stakeholders and Impact

Sitharaman's framing deliberately centres constituencies that are central to India's employment and export profile. MSMEs — micro, small, and medium enterprises — account for a significant share of India's manufacturing employment and non-farm exports. Women-led MSMEs and artisan clusters in garments, leather, and handicrafts stand to gain from reduced tariffs and improved regulatory recognition in partner countries.

For the AYUSH sector, established by a dedicated ministry in 2014, trade agreements that include chapters on standards and certifications for traditional medicine products could unlock premium markets in Europe, the Gulf, and the Asia-Pacific. Organic product exporters similarly benefit when agreements include mutual recognition of certification standards, reducing compliance costs.

What's Next

Attention now turns to ongoing negotiations with the European Union and the United Kingdom, two agreements that have been in advanced stages of discussion. Both deals are expected to include chapters on sustainable development and geographical indications — provisions of particular relevance to Indian agricultural and handicraft exporters seeking brand protection in large consumer markets.

Parliamentary review of implementation reports for the UAE and Australia agreements is also expected in coming sessions, which will provide the first legislative scrutiny of whether the promised market-access gains are materialising on the ground for farmers and small exporters.