US, EU, UK look to set up India supply-chain: report

As part of their planned trade deals with India, the US, UK and European Union (EU) are exploring options to build a supply chain in the country, Hindustan Times reported, citing people familiar with the matter.

This matter was discussed during Indian officials’ recent visits to the US and Europe.

The ongoing free trade agreement (FTA) negotiations are likely to be on the top of the agenda as commerce minister Piyush Goyal is on his five-day Europe tour that covers London, Oslo, and Brussels. The tour aims to advance trade negotiations and strengthen economic ties with the UK and EU.

In his social media post on X, Goyal said that he had a productive meeting with Jonathan Reynolds, the UK secretary of state for business and trade.

Arrived in London for two days of engaging discussions aimed at strengthening bilateral trade and investment relations.

In my first engagement, I held a productive meeting with the UK Secretary of State for Business and Trade @JReynoldsMP to advance Free Trade Agreement… pic.twitter.com/1vaXssjKo3

— Piyush Goyal (@PiyushGoyal) April 28, 2025

Developed economies may explore setting up mutually beneficial, cost-effective collaborations in several manufacturing sectors under the investment chapter of proposed free trade agreements, a person in the know told Hindustan Times.

FTA partners can use each other’s strengths to create sector-specific supply chains and become competitive in the international market, the report added.

Several multinational European companies are also considering setting up supply chains in India for their manufacturing venture.

Meanwhile, India and the UK are in the final stages of negotiating a comprehensiveFTAthat could double bilateral trade to $40–60 billion within a decade.

Similarly, India and the EU are hoping to close a tade deal by year end, alongside parallel talks on an investment protection pact and geographical indications agreement.