India’s FTA Network Gains Momentum, Boosting Exports and Global Market Opportunities
New Delhi, August 18, 2026: India is expanding its network of Free Trade Agreements (FTAs) while placing greater emphasis on their effective utilisation to increase exports, investment and employment opportunities.
According to the Ministry of Commerce and Industry, India’s total exports of goods and services reached a record US$863.1 billion in FY 2025-26, including merchandise exports of US$441.8 billion. During April-June 2026, combined exports were estimated at US$232.73 billion, registering an 11.37 per cent increase over the corresponding period of the previous year.
UAE emerges as India’s largest FTA export market
The United Arab Emirates has emerged as one of India’s most important export destinations among FTA partner countries. India exported goods worth US$37.36 billion to the UAE in FY 2025-26.
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) came into force on May 1, 2022. Bilateral trade crossed US$100.06 billion in FY 2024-25, registering a 19.6 per cent increase.
Following this growth, India and the UAE have set a target of doubling bilateral trade to US$200 billion by 2032.
India’s exports to Australia rise by more than 80 per cent
The India-Australia Economic Cooperation and Trade Agreement (ECTA) came into force on December 29, 2022. It marked an important trade agreement between India and a developed economy.
India’s exports to Australia increased from around US$4 billion in FY 2020-21 to US$7.28 billion in FY 2025-26, representing growth of more than 80 per cent.
Australia provided immediate zero-duty access on 98.3 per cent of its tariff lines. From 2026, Indian exports became eligible for wider zero-duty access to the Australian market.
Easier access to FTA benefits for exporters
Under FTAs, exporters need to establish that their products meet the applicable rules of origin to claim reduced or zero customs duties. Preferential Certificates of Origin are an important part of this process.
The use of such certificates has increased under recently implemented FTAs. Since the India-EFTA TEPA came into force in October 2025, 7,885 Certificates of Origin have been issued. Following the implementation of the India-Oman CEPA in June 2026, 783 Certificates of Origin have been issued.
The government has also introduced digital initiatives such as e-CoO 2.0 to simplify and speed up the certification process. The system includes electronic signatures and QR-code-based verification.
Wider range of Indian products entering FTA markets
The range of Indian products being exported to FTA partner markets has also expanded.
In the UAE, the number of tariff lines under which Indian products were exported increased from 7,546 to 8,053, a rise of 6.7 per cent.
In Australia, the number increased from 5,396 to 5,668, representing a 5 per cent rise.
In Mauritius, it increased from 3,593 to 4,345, a growth of 20.9 per cent.
In Oman, the number increased from 2,879 in May 2026 to 3,371 in June 2026, representing a rise of 17.08 per cent.
The trend indicates that Indian businesses are increasingly using FTA opportunities to expand the range of products entering overseas markets.
Major opportunities for labour-intensive sectors
Recent Indian trade agreements have expanded market opportunities for sectors such as textiles, agriculture and processed food, leather and footwear, marine products, gems and jewellery, carpets and handicrafts.
These opportunities can enable small producers, MSMEs and local enterprises to participate more actively in international trade. At the same time, phased tariff liberalisation and transitional arrangements provide safeguards for farmers and sensitive domestic sectors.
New opportunities for Indian services and professionals
India’s FTAs are also creating opportunities beyond merchandise trade. The services sector is an important part of India’s export economy.
India’s services exports stood at US$421.3 billion in FY 2025-26. Recent trade agreements provide opportunities in areas including IT, healthcare, education, finance, tourism, construction and business services.
The India-New Zealand FTA provides a pathway for 5,000 skilled Indians to stay for up to three years. The India-EU FTA covers 144 services sub-sectors, while the India-UK CETA includes mobility provisions for professionals in IT, healthcare, finance and education.
India expands its future trade agenda
India’s existing FTAs are entering a deeper implementation phase, with the government focusing on increasing their utilisation by businesses and expanding exports to partner markets.
At the same time, India is engaged in discussions on around 10 trade agreements, including with the Eurasian Economic Union, Peru, Chile, Israel, Canada and Maldives. Existing agreements such as the India-Korea CEPA and India-Sri Lanka ETCA are also being upgraded.
The broader objective is to connect Indian products, services, businesses and skills with more global markets and strengthen India’s export potential through a growing network of trade agreements.
