India's simultaneous pursuit of FTAs with the U.S., EU, GCC and EAEU reflects a strategy of trade diversification amid tariff unilateralism. Critically examine.

In February 2026, India and the U.S. agreed a framework with an 18% "reciprocal" tariff on Indian goods [1]. Within weeks, the U.S. Supreme Court ruled that IEEPA, the law behind those tariffs, does not allow them [2]. This kind of volatility explains why India is negotiating with several partners at once. The strategy is largely diversification, but not entirely, and it has limits.

Diversification as a hedge against tariff unilateralism

• Shifting U.S. baseline: a temporary 10% Section 122 surcharge, valid for only 150 days, replaced the IEEPA tariffs [3]. The negotiated 18% then gave India no edge over rivals, so Goyal said the pact would be reworked for "changed circumstances" [4].
• Stable partner: the India–EU FTA, concluded on 27 January 2026, gives preferential access on 97% of EU tariff lines [5].
• Gulf anchor: the GCC is India's largest trading-partner bloc, with trade of USD 178.56 bn in FY 2024-25, much of it crude oil and LNG imports [6].
• Strategic balance: the EAEU ToR (August 2025) widens Eurasian links, including with Russia, while India negotiates with Washington [7].
• Scale: Goyal says India's FTAs now give preferential access to about two-thirds of global trade [8].

Limits of the diversification argument

• The push began earlier: India–EU talks were relaunched in 2022 [9]. U.S. unilateralism sped up the push but did not start it.
• Not substitutes: GCC and EAEU talks have only just begun. The EAEU process starts with goods, and services are only "to be examined" later [7]. Neither matches the depth of the U.S. market.
• Uneven concessions: India agreed to cut duties on DDGS, soybean oil and tree nuts [1]. These are lasting commitments, while the U.S. surcharge is temporary [3]. This also worries maize and soybean growers.
• Domestic red lines: the government says cereals and dairy remain protected [10]. Deep deals with developed economies will keep pressing on these lines.
• Two-way rebalancing clause: either side may change its commitments if the other changes tariffs [1]. This keeps uncertainty alive.

Running several FTAs at once is best read as calibrated hedging. It is partly a response to U.S. unilateralism and partly a continuation of long-running integration. India should sign with the U.S. only once U.S. concessions have durable legal backing, keep farm quotas open to review, and fast-track the EU and GCC pacts. Diversified, rules-based trade, in line with SDG 17's call for an open, non-discriminatory trading system, protects India better than reliance on any single market.