Foreign Policy & Deals

Major government-to-government defence deals include Rafale jets (France, 2016 — 36 aircraft, ₹59,000 Cr), P-8I maritime patrol aircraft (US), Apache/Chinook helicopters (US), S-400 air defence (Russia), MRFA (multi-role fighter aircraft — ongoing). India remains the world's largest arms importer (2019-23 SIPRI data), though import share is reducing with Atmanirbhar push. Offset clauses (30%) have had mixed success in building domestic capability. Source ↗

Covers significant bilateral trade and investment agreements including FTAs, CECAs (Comprehensive Economic Cooperation Agreements), and Economic Partnership Agreements. Key deals: India-UAE CEPA (2022, India's fastest-ever FTA), India-Australia ECTA (2022), India-UK FTA (under negotiation). India negotiated 12 FTAs between 2014–2024 after a decade-long pause. An India-EU FTA is ongoing. Critics argue India has been selective — avoiding FTAs with China and a few ASEAN partners. Source ↗

Merchandise exports grew rapidly from 2004–14 on the back of global commodity boom and engineering/pharma diversification. They dipped in FY2015-16 due to global demand weakness and again in FY2020 (COVID). Services exports (IT, BPO, financial) add another ~$340B, taking total exports above $770B. The $1T goods export target by 2030 requires PLI-led manufacturing scale-up and logistics cost reduction. Source ↗

India has been the world's top remittance recipient for over a decade. Remittances grew steadily from 2004, dipping briefly in FY2015-16 due to Gulf oil price crash reducing Indian workers' earnings there. The US, UAE, UK, Saudi Arabia, and Canada are the top source countries. Remittances (~3.4% of GDP) have consistently exceeded FDI inflows — a significant current account support. Source ↗

India's 'Comprehensive Strategic Partnership' (CSP) status — the highest tier of bilateral diplomatic relationship. Partners include US, Russia, France, Germany, UK, Australia, Saudi Arabia, UAE, Japan, and others. India has adopted a multi-alignment policy rather than formal alliance membership, enabling simultaneous partnerships with the US, Russia, and Gulf states. This flexibility is a diplomatic strength but also a source of tension in crisis situations (e.g., Russia-Ukraine). Source ↗