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This Week in AsiaEconomics

India’s trade blitz seeks to keep a sinking global order afloat

‘Jolted out of its slumber’ by US tariffs, New Delhi is aggressively diversifying trade alliances to act as a bridge in a polarised world

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Indian Prime Minister Narendra Modi (centre) with European Commission President Ursula von der Leyen (right) and European Council President Antonio Costa at Hyderabad House in New Delhi on January 27. Photo: European Council/dpa
Biman Mukherji
When India sealed a landmark free-trade pact with the European Union last month, Brussels’ top bureaucrat saw more than an economic deal taking shape.

“India has risen and Europe is truly glad about it,” European Commission President Ursula von der Leyen declared. “Because when India succeeds, the world is more stable, more prosperous and more secure.”

Her words were more than just a diplomatic nicety; they reflected a growing consensus in European capitals that India has become an indispensable, pragmatic economic partner at a time of rising protectionism and great-power rivalry.

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Less than a week after Brussels signed its trade deal with India, US President Donald Trump was announcing one of his own – the details of which are still vague – adding to a string of accords that New Delhi has concluded in recent months with Britain, New Zealand and Oman.
Trade officials from India and Britain meet for talks in London last April. Photo: UK Department for Business and Trade/Reuters
Trade officials from India and Britain meet for talks in London last April. Photo: UK Department for Business and Trade/Reuters
Canada, led by Prime Minister Mark Carney, is scheduled to join the list next month with a wide-ranging agreement reportedly aimed at reducing his country’s economic dependence on the United States.
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Each deal reveals a little more of a deliberate strategy on Delhi’s part to diversify trade routes, expand its influence and anchor itself as the steady centre of an international system showing clear signs of strain.

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