With geopolitical fragmentation reshaping global commerce, a new think-tank report has suggested that India must reassess its existing free trade agreements (FTAs), modernise its investment screening, and better coordinate its trade and industrial policies.
Released jointly by Koan Advisory Group, Chintan Research Foundation, the Information Technology Industry Council, and the Institute of Chinese Studies, the report titled ‘Resilience in a fragmenting world: India’s economic relations with great powers’, has been compiled after extensive consultations with government, industry, and civil society representatives on India’s shifting economic ties with the US and China, according to a statement.
‘Trade agreements cannot be treated as ends in themselves. India needs a clearer understanding of what each agreement delivers in terms of market access, supply-chain resilience and industrial capacity. In a more uncertain and protectionist world, evaluating whether our FTAs have met their objectives becomes even more important’, said Shishir Priyadarshi, President, Chintan Research Foundation.
The report suggests that India should audit existing FTAs, assess whether they have met intended objectives, and align future trade agreements more closely with industrial and export priorities. It also recommends that India explore high-quality market arrangements and utilise multilateral institutions and bilateral investment treaties to secure greater predictability for businesses and investors.
On the controversial issue of India’s economic engagement with China and its growing manufacturing dependence, the report recommends a multi-pronged approach. “Rather than relying solely on geography-based restrictions, participants recommended a sector-specific and national-security-led investment screening framework, coupled with a phased strategy to reduce dependence on Chinese inputs where vulnerabilities exist,” a press statement pointed out.
Stakeholders noted that India’s manufacturing ambitions, particularly in electronics, clean energy and advanced technologies, remain linked to global supply chains that include Chinese capital and components. “The report recommends utilising Chinese investment and technology in non-strategic sectors while strengthening screening mechanisms in genuinely sensitive areas,” it said.
India has finalised, concluded or announced nine FTAs over the past three-and-a-half years and expects them to become operational within the next year. These include ones with the EU, the UK, the US, Oman, UAE, Australia, Mauritius, the EFTA bloc and New Zealand. It also hopes to conclude negotiations on three-four other trade pacts over the next year.
New Delhi is simultaneously reviewing its older FTAs, with partners such as the ASEAN, Korea and Japan, to address widening trade deficits, non-tariff barriers, and loopholes in rules of origin.
Published on June 4, 2026
