Business Daily (BBC World Service)
Episode: Why is India striking so many trade deals?
Host: Rahul Tandon
Date: February 19, 2026
Main Theme
This episode investigates India's surge in global trade agreements and the factors driving so many countries to strike deals with the world's fastest-growing major economy. The discussion explores India's economic transformation over the past few decades, the opportunities and challenges these deals present, and the implications for India's vast population—particularly those engaged in sensitive sectors like agriculture.
Key Discussion Points and Insights
1. India’s Economic Transformation and Global Interest
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Rapid Economic Growth:
India has evolved from the world’s 11th largest economy a decade ago to being on the verge of entering the top three.
“Then we were the 11th largest economy in the world. Now we are knocking on the doors of the top three.” — Rahul Tandon [02:16] -
Digital Revolution:
The country now boasts 800-900 million smartphone users, marking a massive leap in technology and consumer behavior.
“You've got a country of 1.4 billion people, Rahul, and you've got over 800 to 900 million smartphone users.” — Aruna Dair Mukherjee [04:16] -
Growing Middle Class and Consumption:
The middle class is estimated at 400-500 million, fueling demand for goods and services, including imported products.
2. Trade Agreements: The 'Mother of All Deals'
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Major Recent Deals:
India has secured high-profile agreements with the EU, New Zealand, and the UK, and established a framework with the US.
“We did it. We delivered the mother of all deals. We are creating a market of 2 billion people.” — Ursula von der Leyen (EU Commission President, via clip) [03:07] -
Mutual Benefit:
These deals are viewed as win-win, reflecting India’s emergence as a vital partner in the global economy.
3. Legacy of Economic Liberalization
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Liberalization of the 1990s:
Former Prime Minister Manmohan Singh’s economic reforms opened India to foreign goods and capital.
Clips recall how once-exotic products like Coca-Cola were kept out and later became everyday items after liberalization.
“There was a long period of time when we didn't have big foreign brands...and then you had liberalization thanks to then Finance Minister Dr. Manmohan Singh...” — Aruna Dair Mukherjee [04:59] -
Visible Change:
The interviewees recount personal anecdotes about how the emergence of global brands and digital payments, even in tin-roof tea stalls, have changed everyday life. “You've got this small shack on the side of the road...The guy's selling tea, but he's accepting digital payments. So I think those are things which are definitely something that I find very, very interesting as I look at India's growth story.” — Aruna Dair Mukherjee [08:12]
4. Challenges: Poverty, Unemployment, and Inequality
- Mixed Impact:
While 171 million people have exited poverty in the last decade (per the World Bank), significant numbers still face hardship and unemployment. “The World Bank says 171 million people have been lifted out of poverty in the last decade. But it's important to point out that huge challenges remain and that life remains difficult for millions of Indians. And unemployment is still a challenge.” — Rahul Tandon [09:44]
5. The Intricacies of Trade Negotiations
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Complexity and Duration:
Trade agreements can take decades; the EU deal took over 20 years due to the difficulty of aligning so many interests. “To bring all of this together in a trade agreement where it is binding...becomes quite a task. There are huge teams from both sides. They are continuously talking. It's a very...difficult task.” — Sangeeta Godwale, former Indian trade negotiator [11:04] -
The Role of the US and Geopolitics:
Shifts in global trade frameworks, such as the US under Donald Trump, have accelerated some negotiations, particularly with the EU. “Donald Trump's tariffs have helped some countries come together.” — Sangeeta Godwale [15:57]
6. Risks: Domestic Sectors under Threat
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Agricultural Sensitivities:
Over 50% of India’s workforce is in agriculture, making this sector highly sensitive to liberalization. “One of the big concerns has been from the Indian agriculture sector, which employs well over 50% of India's workforce.” — Aruna Dair Mukherjee [17:54] -
Public Concerns and Protests:
Worries abound about foreign goods undermining local farmers and industries.
“That is going to further push into a much more acute crisis. So against that, it is a fight for our survival and we will go to any extent to ensure that our struggle is successful.” — Viju Krishnan, farmer leader [17:35] -
Political Critique:
Some politicians (e.g., Shashi Tharoor) warn of strategic disadvantages and ‘economic preemption’ by agreeing to terms that may disadvantage Indian producers.
“No major economy has ever neutralized its own trade leverage in this manner…This is not strategic balancing. It is economic preemption.” — Shashi Tharoor (parliamentary clip) [16:22] -
Need for Caution and Preparation:
“We need to be prepared. If we are well prepared, we can create really magic out of these opportunities. Otherwise, well, it will be difficult.” — Sangeeta Godwale [01:34, 15:10]
7. India's Newfound Bargaining Power
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Stronger Position at the Table:
India commands more respect and gets better terms, but remains cautious to avoid flooding markets with cheap imports. “Now, India is the fastest growing economy…so you can imagine the consumption that India is going to do in the coming years. And that is why all the developed countries or all the rich countries want to strike a deal with this huge aspirational mass of young people, well trained and growing very rapidly.” — Sangeeta Godwale [12:32] -
Changing Nature of Imports:
Rising prosperity means shifting import trends, from basics to luxury and lifestyle goods. “Imported fresh fruit, their import doubled in the last five years…because the per capita income and the per capita GDP is also growing, there is a huge young aspirational class which wants the best in the world.” — Sangeeta Godwale [13:25]
Notable Quotes & Memorable Moments (with Timestamps)
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On rapid social change:
“The speed at which the changes have happened for this generation have been much faster…than perhaps any previous generation.” — Aruna Dair Mukherjee [04:16] -
On the liberalization ‘moment’:
“A crisis therefore is also an opportunity. And I am going to use this crisis to begin a process of structural change.” — Manmohan Singh (archival clip) [05:10] -
On digital transformation at street level:
“The guy's selling tea, but he's accepting digital payments. That was unthinkable a few years ago.” — Aruna Dair Mukherjee [08:12] -
On India’s motivations and risks:
“We need to guard against being overwhelmed by cheaper imports. So as you would have noticed, we have not done an FTA with China…” — Sangeeta Godwale [15:10] -
On geopolitical shifts in trade negotiations:
“Donald Trump's tariffs have helped some countries come together.” — Sangeeta Godwale [15:57] -
On protests and opposition:
“So against that, it is a fight for our survival and we will go to any extent to ensure that our struggle is successful.” — Viju Krishnan, farmer leader [17:37]
Important Timestamps
- [02:36] – The scale of India’s economic transformation and the New Delhi AI summit
- [03:07] – EU-India ‘mother of all deals’ quote
- [04:16] – Personal experiences of economic change and the spread of technology
- [11:04] – Trade negotiation complexities (Sangeeta Godwale)
- [12:32] – India’s market appeal to the developed world
- [15:10] – Risks and cautious approach in trade negotiations
- [16:22] – Parliamentary opposition and Shashi Tharoor’s critique
- [17:35] – Voices from India’s farm sector on trade deals
Closing Reflection
The episode captures India’s pivotal moment in global trade: ambitious, teeming with economic promise, but still grappling with deep challenges and dissent at home. Whether these trade deals will power India further ahead or generate new social and economic turbulence remains an open question—one with immense consequences both for Indian citizens and the global economy.