Decoding India’s FTA Strategy: What It Means For Key Sectors

Harendra Kumar, Managing Director – Institutional Equities at Elara Capital, offers a sharp perspective on how India's latest Free Trade Agreements (FTAs) are being used as strategic tools to reshape the country's manufacturing and export landscape. Far from being mere diplomatic formalities, these agreements are designed to leverage India's sectoral strengths and position the country as a serious player in global trade. As the world moves away from globalisation and supply chains become more regionalised, Kumar explains how India is aligning its FTAs with key domestic capabilities — from pharmaceuticals and defence to textiles, toys, and clean energy. Citing examples like low-cost generics for the US and reduced textile tariffs under the UK agreement, he highlights how these partnerships could unlock significant export opportunities. Combined with targeted government incentives, these FTAs are set to create a robust ecosystem that could make India a global manufacturing hub within the next three years.