India’s FTA Exports Hit Record High
Government says Free Trade Agreements are driving exports, expanding market access and creating new opportunities for businesses
GG News Bureau
New Delhi, 18th Aug: India’s Free Trade Agreements (FTAs) are delivering strong early results, with the Ministry of Commerce and Industry highlighting record exports, expanding market access and growing participation by Indian businesses in global trade.
According to the ministry, India’s combined merchandise and services exports reached a record US$ 863.1 billion in FY 2025-26, including merchandise exports worth US$ 441.8 billion. The momentum has continued into the current financial year, with combined exports during April-June 2026 estimated at US$ 232.73 billion, registering an 11.37 per cent year-on-year growth.
The government said India’s trade strategy has shifted from expanding the number of FTAs to ensuring their effective utilisation. The objective is to convert market access into higher exports, greater investment, employment generation and wider participation of Indian businesses while safeguarding domestic interests.
Among FTA partners, the United Arab Emirates (UAE) emerged as India’s largest export destination under a trade agreement, with merchandise exports worth US$ 37.36 billion in FY 2025-26. Bilateral trade under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) crossed US$ 100 billion in FY 2024-25, and both countries have now set a target of US$ 200 billion by 2032.
The India-Australia Economic Cooperation and Trade Agreement (ECTA) has also shown encouraging outcomes. India’s exports to Australia increased from US$ 4 billion in FY 2020-21 to US$ 7.28 billion in FY 2025-26, reflecting growth of more than 80 per cent. Australia now provides duty-free access to all eligible Indian exports.
The ministry said exporters are increasingly utilising tariff concessions available under FTAs, reflected in the growing issuance of preferential Certificates of Origin (CoO). Government initiatives such as e-CoO 2.0, simplified documentation procedures and the Trade Connect platform are helping exporters, including MSMEs, access preferential trade benefits more efficiently.
India has also diversified its exports across FTA markets. The number of tariff lines exported to countries including the UAE, Australia, Mauritius and Oman has expanded, indicating broader product penetration into international markets.
The ministry said recent FTAs are creating fresh opportunities for labour-intensive sectors such as textiles, agriculture, processed food, leather, footwear, marine products, gems and jewellery, carpets and handicrafts.
Services continue to remain a major strength, with exports touching US$ 421.3 billion in FY 2025-26. Recent agreements provide improved market access and mobility for Indian professionals in sectors such as information technology, healthcare, finance, engineering and education.
Looking ahead, the government said India is negotiating around 10 new trade agreements, including with the Eurasian Economic Union, Peru, Chile, Israel, Canada and Maldives, while also upgrading existing agreements with South Korea and Sri Lanka.
The ministry said the expanding FTA network is expected to strengthen India’s trade competitiveness, diversify exports and support the country’s long-term goal of becoming a Viksit Bharat by 2047.
