For decades, the story of the developing world was one of structural disadvantage. Nations like India were expected to export raw materials cheap and import finished goods dear, trapped in a cycle that kept the “common man” poor.
But a quiet revolution has taken place in New Delhi.
By concluding high-stakes Free Trade Agreements (FTAs) with the UAE, Australia, and New Zealand, and securing the “mother of all deals” with the European Union, Prime Minister Narendra Modi has fundamentally altered this equation.
These aren’t just diplomatic papers; they are a blueprint for how a developing economy demands, and gets, parity on the global stage.
The brilliance of the current foreign policy lies in its sequencing.
When India signed the India-EU Free Trade Agreement in January 2026, it didn’t just open a market of 450 million high-income consumers; it sent a shockwave through Washington.
For years, the United States remained protectionist, assuming India had no other “big ticket” options. By locking in the EU deal – which eliminates duties on 99.5% of Indian goods – PM Modi eƯectively forced the USA’s hand. The result was the swift Interim Trade Framework with the United States in February 2026, capping tariffs at 18% and setting a trade target of $500 billion. This is classic geopolitical leverage: by diversifying partners, India created a “Fear of Missing Out” (FOMO) that compelled the world’s largest economy to come to the table on our terms.
Yet, trade deals can feel like abstract victories until we see how they change daily life.
Stripping away the jargon, these agreements are about stability, savings, and dignity for millions.
Consider the factory worker. For years, garment factories in Erode or leather hubs in Kanpur struggled. High taxes in the US and EU made Indian shirts more expensive than those from Bangladesh or Vietnam, leading to fewer orders and seasonal layoffs.
With the new India-EU FTA and US Interim Framework, that tax wall is gone. Now, a shirt stitched in Tiruppur or shoes made in Agra can compete globally on price.
For a gold artisan in Mumbai, the India-UAE CEPA has already proven this works: duty-free access boosted exports, ensuring steady work beyond just the wedding season. For a worker supporting a family, this means the security of a consistent paycheck.
The benefits extend beyond the factory floor to our professionals and farmers. Trade isn’t just about goods; it’s about people.
Previously, an IT consultant from Pune working in London lost a chunk of his salary to British social security with zero benefit. New agreements fix this injustice, ensuring those savings stay with his family.
Similarly, deals with Australia and New Zealand recognize Indian degrees, clearing the path for nurses from Kerala or engineers from Tier-2 cities to work abroad.
Perhaps the biggest win, however, is what didn’t happen.
During the negotiations, the US pressured India to open its dairy markets. For Suresh, a small farmer in Andhra Pradesh, competing with heavily subsidized American industrial farms would be impossible. The Modi government drew a red line, shielding sectors that sustain nearly 46% of our workforce. Suresh’s livelihood is safe. Instead, India agreed to buy US energy and high-tech components, stabilizing energy prices at home -protecting the farm while lowering costs for the common family.
Critics often ask, “What is different now?” The difference lies in the details that protect our sovereignty.
The UPA-era trade agreements, specifically the 2010 ASEAN pact, were structurally flawed. They created an “Inverted Duty Structure,” where finished goods from abroad entered at 0% duty, but raw materials were taxed. This encouraged trading over manufacturing and allowed third-party goods, often from China, to flood our markets, ballooning the trade deficit by over 300%.
The Modi government has fixed this.
New deals enforce strict “Rules of Origin” (40% value addition), ensuring that benefits only go to trusted partners, not backdoor entrants. This is a strategic firewall: by building supply chains with the US, EU, and Australia, we are explicitly reducing our dependence on hostile neighbors and opaque Chinese imports, making our economy more secure, resilient, and truly Atmanirbhar (self-sufficient).
The market knows the difference between hype and substance. HDFC Securities has termed 2026 a “Goldilocks” year-ideal conditions where India, now driving 16% of global growth, is poised for a breakout. They project the Nifty to touch 28,720 by year-end, fueled by a robust 6.7% GDP forecast and the expectation that these trade deals will ignite a massive investment boom.
To be sure, the government’s task is not finished. The challenge now shifts to implementation, ensuring that a small MSME owner in Ludhiana actually knows how to claim these duty benefits and meets the rigorous quality standards of Europe or America. But the foundation is set.
These agreements signal a shift from an India that was defensive to an India that is confident. By securing the interests of our farmers, opening doors for our youth, and protecting our borders from unfair dumping, PM Modi has ensured that globalization finally works for the aam aadmi, the common person. The world has realized that India is no longer just a market to sell to; it is a partner to grow with.