New Delhi

India’s robust economic growth has helped offset the impact of higher U.S. tariffs on key export sectors, allowing the country to remain resilient while accelerating free trade agreements (FTAs) to diversify markets, boost services exports, and attract investment, Rakesh Mohan Joshi, Vice Chancellor of the Indian Institute of Foreign Trade (IIFT), told ANI.

“The Indian economy has performed well. Our growth in the last quarter was 8.2 percent,” Joshi said, noting that exports have largely held up despite global trade pressures.

On the U.S. tariff standoff, he said, “India will show resilience. That I’m perfectly fine with.” The U.S. remains a critical market for Indian textiles, particularly bed linen and made-ups, but Indian exporters face tariff disadvantages of up to 50 percent compared with 19-20 percent for Vietnam, Bangladesh, and Pakistan.

Joshi highlighted India’s diversification strategy, including the newly concluded India-New Zealand FTA, which provides zero-duty access for 100 percent of Indian exports from day one. Key sectors expected to benefit include textiles, apparel, engineering, auto, pharma, and gems and jewellery. Sensitive domestic sectors such as dairy, sugar, spices, and edible oil are protected.

The FTA also emphasizes services, temporary mobility, and youth engagement. Up to 5,000 Indian professionals will be eligible for temporary work visas in New Zealand, while students aged 18-30 will get 1,000 working holiday visas. STEM graduates will receive three-year post-study visas, and doctoral scholars four-year visas.

“The agreement is expected to attract $20 million in investment with technology transfer, particularly enhancing productivity in food processing,” Joshi said. He added that India’s broader trade strategy now integrates merchandise, services, people mobility, and investment.

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Despite global uncertainty, Joshi expressed confidence in India’s prospects. “I have no doubt that India would emerge victorious in international trade and markets,” he said.