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India's recent free trade agreements show that the country has changed its approach to international trade. India has changed its approach to international trade by selecting trade partners who already have existing trade relations, which will benefit both parties.

An article by Anna Mahjar-Barducci for the Australian Institute of International Affairs explains this shift as more focused, practical, and growth-driven.

This new approach is already showing strong results in trade numbers, investment interest, and supply chain security.

India used to maintain a defensive international trade strategy. The country showed restraint when it came to market access, while it preferred to stay away from extensive trading agreements. But now, India is moving toward a targeted strategy.

The study examines nations that possess established trade links that function with efficient logistics systems and have matching economic ties. India is expanding its existing trade relationships instead of developing new trade connections with other nations.

This approach helps India reduce risks, protect sensitive sectors, and still gain from global trade. It also shows growing confidence in India’s manufacturing, services, and investment strength.

The numbers clearly show the impact of this strategy.

Between FY 2020–21 and FY 2024–25, India’s total trade with countries covered under FTAs signed since 2021 rose by 92 per cent. In comparison, India’s overall global trade grew by 41.5 per cent during the same period.

The share of these FTA partners in India’s total trade basket also increased sharply. The percentage increased from approximately 11 to 12 per cent during fiscal year 2021 and reached almost 16.5 per cent by fiscal year 2025.

The quick economic expansion demonstrates that India has chosen suitable partners that enable immediate benefits through their trade agreements.

India signed an FTA with Australia in 2022, and trade growth since then has been strong. Bilateral trade rose by 96 per cent between FY 2020–21 and FY 2024–25.

Australia supplies coal, critical minerals, metal ores, and energy inputs that are important for India’s industries. India, in return, exports refined petroleum products, pharmaceuticals, machinery, textiles, and consumer goods.

The agreement also provides for cooperation in trade in services, particularly in education and professional services. It encourages cooperation in clean energy and critical minerals. Strategically, Australia helps India diversify supply chains and secure key resources for long-term growth.

India signed an FTA with New Zealand in 2025. Since then, trade has grown by around 50 per cent, though from a smaller base.

India exports pharmaceuticals, machinery, and manufactured goods to New Zealand. In return, it imports wool, agricultural products, metals, and raw materials.

The agreement is carefully designed. It improves market access while protecting sensitive sectors, especially agriculture. This also signals an investment angle reflecting confidence in India's medium-term growth story.

India signed a trade agreement with the UK in 2025, but trade was already rising even before the deal was completed. India–UK trade expanded by 76 per cent between FY 2021 and FY 2025.

The UK is a high-income market where India competes well in pharmaceuticals, textiles, engineering goods, chemicals, auto components, and services. The agreement helps reduce barriers in services and professional mobility and strengthens investment ties.

The agreement establishes support for joint efforts in technology development, financial services, advanced manufacturing operations, and clean energy initiatives. The article states that this agreement demonstrates India's ability to deal with developed markets while maintaining authority over its domestic affairs.

India signed a trade deal with the EFTA countries in 2024. Merchandise trade growth of around 19 per cent may look modest, but the real value lies elsewhere.

Imports from EFTA are mainly high-value goods like gold, precision instruments, and chemicals, which keep volumes stable. The key benefit is in investment commitments, technology sharing, and high-skill job creation.

The India–EFTA agreement shows that India now sees FTAs not just as tariff-cutting tools, but as ways to support capital formation and industrial upgrading.

The current Indian trade strategy shows better results through its existing Free Trade Agreements because those agreements lead to better trade partnerships, which enhance trade efficiency and partner confidence. The Indian government achieves multiple economic benefits through its trade agreements with countries that already have successful trading relationships.

The results up to this point indicate that the current targeted approach will achieve better and more enduring results than previous trade methods.