Economy
31-Jul, 2026
India's Free Trade Agreements power record export growth and global market expansion
By: Team India Tracker
According to central government estimates, total exports of goods and services rose to US$860.09 billion, marking a 4.22 percent increase over the previous fiscal year’s US$825.26 billion. Image Source: IANS
Alongside expanding market access through trade agreements, the Department of Commerce has substantially strengthened its digital trade facilitation ecosystem to help exporters maximise the benefits of these agreements.
India's external trade has reached an unprecedented milestone, with total exports touching a historic high of US$ 863.1 billion in FY 2025-26. This includes merchandise exports worth US$ 441.8 billion and services exports of US$ 421.3 billion, reflecting the growing competitiveness of Indian industry and the increasing global demand for the country's services sector. The achievement underscores the resilience of India's export ecosystem and the government's sustained efforts to diversify markets, strengthen trade partnerships and enhance the global competitiveness of Indian businesses.
A major driver of this performance has been India's expanding network of Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs), which have opened new avenues for Indian exporters by providing preferential market access, lowering tariff barriers and facilitating greater integration with global value chains.
India-UAE Comprehensive Economic Partnership Agreement (CEPA)
Since the India-UAE CEPA came into force on 1 May 2022, the agreement has emerged as one of India's most successful trade partnerships. Indian exporters have made extensive use of the preferential tariff benefits available under the agreement, with 4.45 lakh Certificates of Origin (CoOs) issued to date, demonstrating strong utilisation of the FTA.
The agreement has also contributed significantly to export diversification. The number of products exported to the UAE at the HS 8-digit tariff level increased from 7,546 tariff lines in FY 2021-22 (pre-CEPA) to 8,053 tariff lines in FY 2025-26, representing an expansion of 507 tariff lines (6.7%). Exports across these tariff lines were valued at US$ 37.3 billion, highlighting not only greater product diversification but also deeper penetration of the UAE market by Indian exporters.
India-Australia Economic Cooperation and Trade Agreement (ECTA)
The India-Australia ECTA, operational since December 2022, has similarly delivered substantial gains for Indian exporters. Since its implementation, 2.73 lakh Certificates of Origin have been issued, compared to just 1,482 Certificates of Origin in FY 2020-21, before negotiations concluded. Following the agreement's implementation, Certificate of Origin issuance has risen dramatically, averaging nearly 45,527 certificates annually, reflecting increasing exporter confidence and utilisation of the agreement.
The agreement has also broadened India's export basket to Australia. The number of tariff lines exported at the HS 8-digit level increased from 5,396 in FY 2021-22 to 5,668 in FY 2025-26, representing an addition of 272 tariff lines. Exports across these product categories were valued at US$ 7.2 billion, indicating improved market access, greater product diversification and stronger bilateral trade ties.
India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)
The India-Mauritius CECPA, which entered into force on 1 April 2021, provides preferential market access for 310 Indian product lines while also covering services, Rules of Origin, customs procedures and broader economic cooperation.
Since its implementation, Indian exporters have obtained 1,956 Certificates of Origin under the agreement. The breadth of India's exports to Mauritius has expanded considerably, with the number of tariff lines exported increasing from 3,593 in FY 2021-22 to 4,345 in FY 2025-26—an increase of 752 tariff lines (20.9%). Exports across these tariff lines reached approximately US$ 473 million, demonstrating the agreement's contribution to export diversification and improved access to the Mauritian market.
India-Oman Comprehensive Economic Partnership Agreement (CEPA)
India's CEPA with Oman, which came into force on 1 June 2026, represents one of India's most ambitious trade agreements in the Gulf region. The agreement grants duty-free access to 99.38% of India's exports by value, covering 98.08% of Oman's tariff lines, thereby creating extensive opportunities for Indian exporters.
Within the first month of implementation, 783 Certificates of Origin had already been issued, signalling encouraging utilisation of the agreement. The immediate impact is also visible in trade performance. The number of tariff lines exported increased from 2,879 in May 2026 to 3,371 in June 2026, while exports surged to US$ 622.8 million in June 2026, compared to US$ 402.7 million in May 2026, representing a 54.7% month-on-month increase. Compared to US$ 215.1 million recorded in June 2025, exports registered an impressive 189.6% year-on-year growth, highlighting the agreement's early success in expanding market access and export opportunities.
India-EFTA Trade and Economic Partnership Agreement (TEPA)
The India-EFTA TEPA, effective since October 2025, has further strengthened India's engagement with the European market. Under the agreement, the EFTA countries have offered concessions on 92.2% of tariff lines, covering 99.6% of India's exports, including 100% of non-agricultural products and significant tariff concessions on processed agricultural products.
Indian exporters have responded positively to these opportunities, with 7,885 Certificates of Origin issued since the agreement entered into force, reflecting strong uptake of the preferential tariff benefits and growing exporter confidence in the agreement.
Boosting Labour-Intensive Exports and Manufacturing Competitiveness
A central objective of India's recent trade negotiations has been to expand opportunities for labour-intensive sectors while safeguarding sensitive domestic industries through calibrated tariff liberalisation and carefully negotiated transition periods.
The FTAs concluded with the United Arab Emirates, Australia, the United Kingdom, Oman, New Zealand and the EFTA countries provide unprecedented market access across several major economies. These agreements offer preferential access covering 99% of Indian exports to the United Kingdom, 97% of European Union tariff lines accounting for nearly 99.5% of bilateral trade value, 100% duty-free access for Indian exports to New Zealand, 98% of Oman's tariff lines, and 99.6% of tariff lines under the India-EFTA TEPA.
These agreements are expected to generate significant opportunities for employment-intensive sectors including textiles and apparel, leather and footwear, gems and jewellery, marine products, carpets, handicrafts and agricultural products. By combining enhanced market access with adequate safeguards for domestic industries, India's FTA strategy seeks to strengthen manufacturing competitiveness, create employment, diversify exports and deepen the country's integration into global value chains.
Digital Platforms Enhancing Trade Facilitation
Alongside expanding market access through trade agreements, the Department of Commerce has substantially strengthened its digital trade facilitation ecosystem to help exporters maximise the benefits of these agreements.
The Trade e-Connect platform serves as an integrated exporter facilitation portal, bringing together market intelligence, tariff information, Rules of Origin guidance, non-tariff barrier information, buyer-seller connect services, trade event updates, country and product profiles, and FTA advisory services on a single digital platform. It also enables exporters to engage directly with Indian Missions abroad and relevant government agencies, helping reduce information asymmetry, improve market intelligence and facilitate easier access to international markets.
Complementing this initiative is the Trade Intelligence and Analytics (TIA) Portal, which provides comprehensive commodity-wise trade statistics, partner-country information, interactive dashboards and advanced analytical tools. The portal supports evidence-based policymaking while enabling real-time monitoring of export trends and helping businesses identify emerging opportunities in global markets.
Together, India's expanding FTA network, record export performance and strengthened digital trade facilitation architecture reflect a comprehensive strategy aimed at enhancing export competitiveness, diversifying markets, promoting labour-intensive manufacturing and positioning India as an increasingly important participant in global trade and value chains.
