India’s Global Trade Playbook :
How Personalized trade deals are shaping strategic inter-country relationships
Trade is what has kept the world going for centuries, right from Indus Valley Civilization to current times. The very basis for finding new lands, new routes and even colonization was trade and going forward, trade will be pivotal in changing the world order in future!
In the past few months we have seen a churn in the current trade order. Reciprocal taxes, trade partnerships and the limited response of WTO to unilateral tariff changes have put the existing trade relations under strain. New players are emerging and multi-lateral trade relationships are being formed as many are prioritizing trade over long term alliances around religion or culture.
Fueled by a stronger economy (4th largest economy in the world with +4 trillion economy) with a healthy growth rate along with a strong focus on trade partnerships and trade corridors, India too is taking center stage, instead of being on the sidelines.
Over the years, India has worked consistently in growing India’s exports, with exports crossing $770.18 billion in 2022–23, a record high! Moreover, India has increasingly engaged in numerous bilateral and regional trade agreements and fostered stronger international partnerships.
With its strategic approach, India is not only seen as a key connector between the West and East but also as a dominant force in the global trade landscape. India’s approach to trade of creating personalized trade deals and identifying new trade corridors are reshaping India’s global influence. Read on to know more.
Beyond Traditional Trade: India’s Custom Approach
India’s trade diplomacy is not broad-brushed or templatized. It is tailored to India’s engagement with countries and focuses on mutual benefits and possible strategic future collaborations. These personalized deals allow India to navigate complex geopolitics while keeping strategic autonomy.
The India–US Equation: More Than Just Trade
India and the U.S. are deepening their strategic partnership, extending beyond trade to encompass defense and technology. Stat shows that bilateral trade between the two nations reached approximately $129.2 billion, positioning the U.S. A as India's largest trading partner.
Recent Developments Underscore This Growing Alliance:
● Defense Collaboration :
As per the India-Us joint statement (Feb. 2025), the two countries have agreed to expand defense sales and co-production, integrating U.S.-origin defense items into India's inventory, including aircraft and missile systems.
● Semiconductor Partnership :
Another news confirms that the U.S. and India are collaborating to establish semiconductor fabrication facilities in India with the goal of strengthening national security and advancing technological independence.
● Trade Negotiations :
India is actively pursuing a trade agreement with the U.S., to double bilateral trade to $500 billion by 2030.
IMEC: A Corridor That Could Change Everything
India's commitment to the India-Middle East-Europe Economic Corridor (IMEC) is one of the most ambitious moves in its global trade playbook. Launched at the 2023 G20 Summit, this initiative aims to establish a high-capacity trade network connecting India, the Middle East and Europe.
Key Highlights of IMEC :
● Faster Trade :
IMEC is expected to reduce logistics costs by 30% and transportation time by 40%.
● Economic Growth :
This corridor is projected to boost India’s GDP by 1.5% annually by 2030.
● Job Creation :
IMEC could generate up to 2 million jobs in India and the Gulf region.
● Renewable Energy :
It opens doors for deeper solar and wind energy cooperation with Europe.
● Strategic Infrastructure:
India’s new Vadhavan port will significantly enhance trade with Europe.
This corridor along with the trade deals with the UAE has translated into a strategic relationship with the Middle East that goes beyond trade, people, culture and diplomatic connection.
BIMSTEC and RCEP : Looking East and Beyond
India’s strategic corridors go beyond the West. The BIMSTEC corridor, connecting South Asia with Southeast Asia, is gaining momentum. This regional alliance allows India to strengthen economic and security ties with neighboring countries. Moreover, it is also opening new trade routes and reducing dependence on any single bloc.
Meanwhile, India exited the Regional Comprehensive Economic Partnership (RECP) in 2019 due to trade imbalance concerns. However, it continues to engage with many RCEP nations. As ASEAN’s influence grows, India remains active in regional value chains through selective partnerships and cooperation.
BRICS and Beyond : India's Multipolar Trade Strategy
India's participation in the BRICS (Brazil, Russia, India, China, South Africa) bloc exemplifies its multipolar approach to global trade. Stat shows India’s trade with BRICS nations crossed US$100 billion in 2022, with active exchanges involving all member countries. The 2023 BRICS summit expanded the group to include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, enhancing India's strategic partnerships across continents.
The Look East Policy
India’s Look East Policy (Act East Policy) encourages stronger economic, cultural, and strategic engagement with East and Southeast Asia. This complements India’s work with the West and helps create a web of connectivity — not just physical, but also economic and diplomatic.
Conclusion : India’s Playbook Is Personal and Strategic
In a nutshell, India is navigating global trade with a multifaceted approach. From securing defense technology from the US to forming solar alliances with Europe and strengthening trade routes in Asia, every move enhances its economic and strategic standing while keeping a strong focus on increasing global trade partners.
In a rapidly changing global landscape, India’s approach emphasizes the need to look at trade beyond transaction. Instead of weaponizing trade, India’s approach has been more pragmatic, where it is diversifying economic partnerships, growing influence in the region and positioning itself as a resilient and forward-thinking global player.