Indian Economy News

India Turns FTAs into Export Growth

India’s Free Trade Agreement (FTA) strategy is increasingly shifting from signing trade pacts to ensuring their effective utilisation by Indian businesses. In FY26, combined merchandise and services exports reached a record Rs. 76.28 lakh crore (US$ 863.1 billion), including merchandise exports of Rs. 39.05 lakh crore (US$ 441.8 billion), while exports during April-June 2026 stood at Rs. 20.95 lakh crore (US$ 232.73 billion), up 11.37% year-on-year. FTA partners are emerging as important export destinations, with the UAE receiving merchandise exports worth Rs. 3.30 lakh crore (US$ 37.36 billion) in FY2025-26. Under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), bilateral trade reached Rs. 8.85 lakh crore (US$ 100.06 billion) in FY25, while India’s exports to Australia rose to Rs. 643.31 billion (US$ 7.28 billion) in FY26 from US$ 4 billion in FY21.

The growing use of preferential Certificates of Origin (CoOs) reflects increasing utilisation of FTA benefits, with 7,885 CoOs issued under the India-EFTA Trade and Economic Partnership Agreement (TEPA) and 783 under the India-Oman CEPA. The number of tariff lines exported to key partners has also expanded, while sectors such as textiles, agriculture and processed food, leather and footwear, marine products, gems and jewellery and handicrafts are gaining wider market access. FTAs are also supporting services and professional mobility, with India’s services exports reaching Rs. 37.24 lakh crore (US$ 421.3 billion) in FY26. With around 10 trade agreements under discussion, India is seeking to convert negotiated market access into higher exports, diversified markets, investment and employment.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.