Daily News - Wednesday, 25 February 2026
India, Canada to restart FTA talks as PM Carney visits New Delhi (Fortune India)
Commerce and Industry Minister Piyush Goyal announced that India and Canada are set to finalise terms of reference (ToR) this week to restart Free Trade Agreement (FTA) negotiations, which had been paused in 2023. Canadian Prime Minister Mark Carney is scheduled to arrive in India on 26 February, during which the ToR outlining scope and modalities of the pact will be agreed. India’s exports to Canada rose 9.8% to USD $4.22 billion (INR 351 billion) in FY2024-25 from USD $3.84 billion (INR 320 billion) in FY2023-24, while imports declined 2.33% to USD $4.44 billion (INR 369 billion). Bilateral trade in goods and services stood at USD $18.38 billion (INR 1.53 trillion) in 2023, supported by a strong Indian diaspora of 2.9 million and 427,000 Indian students in Canada. Goyal also noted that the recently signed India-EU FTA may be implemented in the first quarter of 2027, and hinted at renewed talks with the United States once conditions stabilise. Analysts say the Canada FTA could unlock opportunities in agriculture, energy, education, and services, but opposition parties warn about safeguarding small exporters and ensuring balanced tariff concessions.
Moody’ warns India faces volatility in textiles, pharma, auto exports because of US President Trump’s 15% global tariff (Business Today)
Moody’s Analytics warned that President Donald Trump’s plan for a uniform 15% global tariff injects a lot of uncertainty into trade flows, especially for India. The U.S. Supreme Court’s 6-3 ruling, authored by Chief Justice John G. Roberts, struck down Trump’s earlier use of the International Emergency Economic Powers Act (IEEPA) for country‑specific tariffs, forcing Washington to rely on Section 122 of the Trade Act of 1974, which permits duties up to 15% for 150 days. In response, Trump imposed a temporary 10% global tariff, later raised to 15%, replacing targeted levies that had reached 25-50% for countries like India, Indonesia, and China. Moody’s noted that the flat 15% levy could be relatively favourable for China and Southeast Asia, which had faced steeper duties, but complicates India’s interim trade pact with the U.S., including concessions on Russian oil imports and textile exports. Indian negotiators from the Ministry of Commerce and Industry postponed a Washington trip to recalibrate strategy, seeking clarity on whether the 15% duty is an additional surcharge or a temporary substitute. Analysts caution that while the ruling restores Congress’s primacy over tariff powers, it reduces U.S. leverage in bilateral talks, leaving India’s exporters in textiles, pharmaceuticals, and auto components exposed to volatility.
Indian exports faced 50% U.S. tariffs in 2025; now cut to 18% (CNBC)
U.S. Supreme Court’s ruling restricting President Donald Trump’s tariff powers has given India more room to continue importing Russian oil despite earlier U.S. pressure. India imported 1.16 million barrels per day (mbd) of Russian crude in February, down from an average of 1.71 mbd in 2025, according to Kpler data. In August 2025, Trump imposed a 25% additional tariff on Indian goods to punish New Delhi for buying Russian oil, raising total duties on Indian exports to the U.S. to 50%, the highest among U.S. trading partners. Following an interim trade deal earlier this month, U.S. tariffs on Indian goods were cut to 18%, but the joint statement omitted any formal commitment by India to reduce Russian oil purchases. Analysts such as Sarang Shidore (Quincy Institute) and Alexandra Hermann (Oxford Economics) noted that India’s energy strategy is driven by price and diversification, making U.S. crude unlikely to displace Russian barrels in a meaningful way. India’s Ministry of Petroleum and Natural Gas has not commented, but experts expect imports to stabilize between 800,000-1,000,000 barrels per day, while India continues to buy 200,000-300,000 barrels per day of U.S. crude, balancing ties with both Moscow and Washington.
India launches FTA talks with Israel to boost MSMEs, AI, and cybersecurity (Financial Express)
India launched the first round of Free Trade Agreement (FTA) negotiations with Israel, following the signing of Terms of Reference (ToR) in November 2025. The talks cover trade in goods, services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, and intellectual property rights, with the Ministry of Commerce and Industry leading discussions. Bilateral merchandise trade between India and Israel stood at USD $3.62 billion (INR 301 billion) in FY25, with complementarities in innovation, AI, cybersecurity, agriculture, and high‑tech manufacturing. In parallel, India signed a Joint Statement with the Gulf Cooperation Council (GCC) to formally launch negotiations for a comprehensive FTA, with GCC trade reaching USD $178.56 billion (INR 14.8 trillion) in FY25, accounting for 15.42% of India’s global trade. GCC investments in India stood at USD $31.14 billion (INR 2.58 trillion) as of September 2025, underscoring the bloc’s role as a critical partner alongside Israel. Analysts say the dual FTA strategy strengthens India’s trade diversification, but caution that execution will depend on tariff concessions, regulatory clarity, and balancing MSME interests with large‑scale investment flows.
