India’s Free Trade Agreement (FTA) strategy is entering a new phase. After expanding its network of trade agreements over the past decade, the focus is now shifting towards ensuring that Indian businesses make fuller use of the market access created by these pacts.
Recent export data, increased use of preferential Certificates of Origin and a wider range of products being shipped to partner countries indicate that exporters are increasingly tapping opportunities created by India’s FTAs.
What are FTAs and why do they matter?
A Free Trade Agreement is a pact between countries or trading blocs that provides preferential access to each other’s markets by reducing or eliminating tariffs and easing certain trade barriers.
For Indian exporters, this can make their products more competitive in overseas markets by reducing customs duties. For the wider economy, greater market access can support exports, investment, employment and participation of smaller businesses in global trade.
India’s recent trade strategy has therefore focused not only on signing agreements but also on their effective utilisation while protecting sensitive domestic sectors.
How are India’s exports performing?
India’s overall exports have been gaining momentum. In FY 2025-26, combined merchandise and services exports reached a record USD 863.1 billion, including merchandise exports of USD 441.8 billion.
The momentum continued into FY 2026-27, with combined exports during April-June 2026 estimated at USD 232.73 billion, an increase of 11.37 per cent compared with the corresponding period a year earlier.
FTA partner countries account for a significant share of India’s merchandise exports. In FY 2025-26, the UAE was India’s largest individual FTA export market, with merchandise exports of USD 37.36 billion. Other major destinations included the UK, Singapore, Nepal, Australia, Malaysia, Japan and South Korea.
India-UAE: An early success story
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) came into force on May 1, 2022. Negotiations were completed in a record 88 days, making it India’s first full FTA in a decade.
India’s merchandise exports to the UAE reached USD 37.36 billion in FY 2025-26. Bilateral trade crossed USD 100 billion in FY 2024-25, reaching USD 100.06 billion, a 19.6 per cent increase.
Building on this growth, India and the UAE have set a target of doubling bilateral trade to USD 200 billion by 2032.
India-Australia: Expanding access
The India-Australia Economic Cooperation and Trade Agreement (ECTA) came into force on December 29, 2022.
India’s exports to Australia increased from USD 4 billion in FY 2020-21 to USD 7.28 billion in FY 2025-26, representing growth of more than 80 per cent. Total bilateral trade stood at USD 24.1 billion in FY 2024-25.
Australia provided immediate zero-duty access across 98.3 per cent of its tariff lines, with all Indian exports becoming eligible for zero-duty access from 2026. The ECTA is also serving as the foundation for negotiations on a more comprehensive economic cooperation agreement.
How does an exporter actually use an FTA?
Signing an FTA does not automatically mean that every Indian product receives preferential treatment. Exporters generally have to establish that their goods meet the agreement’s rules of origin.
A preferential Certificate of Origin (CoO) serves as proof that the goods qualify for the preferential tariff treatment available under an agreement.
The use of such certificates has increased under India’s newer FTAs. The India-EFTA TEPA, for example, recorded 7,885 CoOs after becoming operational in October 2025, while 783 CoOs had been issued under the India-Oman CEPA following its implementation in June 2026.
The government has also introduced measures such as e-CoO 2.0, which enables digital issuance and verification of Certificates of Origin, while platforms such as Trade Connect help exporters access tariff information and guidance on using FTA benefits.
Are more Indian products reaching these markets?
Yes. The impact is also visible in the number of tariff lines under which Indian products are being exported.
Between the initial period and FY 2025-26, the number of tariff lines exported to the UAE increased from 7,546 to 8,053, while those to Australia increased from 5,396 to 5,668.
The increase was even more pronounced for Mauritius, where exported tariff lines rose from 3,593 to 4,345, and Oman, where the number increased from 2,879 in May 2026 to 3,371 in June 2026.
What sectors stand to benefit?
India’s recent FTAs open opportunities across labour-intensive sectors such as textiles, agriculture and processed food, leather and footwear, marine products, gems and jewellery, carpets and handicrafts.
These sectors are particularly important because wider international market access can allow smaller producers and local enterprises to participate more actively in global trade. At the same time, calibrated tariff liberalisation and transition arrangements are intended to protect sensitive domestic sectors, including agriculture.
What about services and Indian professionals?
The benefits of FTAs are not limited to physical goods. Recent agreements also provide opportunities for Indian service providers and professionals.
India’s services exports stood at USD 421.3 billion in FY 2025-26, making services an important component of the country’s trade strategy.
The India-New Zealand FTA, for instance, provides a dedicated pathway for up to 5,000 skilled Indians to stay for up to three years in areas including IT, engineering, healthcare, education, construction, AYUSH, yoga, culinary arts and music.
The India-EU FTA covers 144 services sub-sectors, while the India-UK CETA includes mobility provisions for professionals in areas such as IT, healthcare, finance and education.
What lies ahead?
India’s FTA journey is moving from negotiating market access to using market access.
Around ten trade agreements are currently under discussion, including negotiations with the Eurasian Economic Union, Peru, Chile, Israel, Canada and Maldives. India is also working to upgrade existing agreements such as the India-Korea CEPA and India-Sri Lanka ETCA.
The broader objective is to make India’s trade agreements translate into greater export participation, diversified markets, more investment and employment, while creating opportunities for Indian businesses, professionals and smaller enterprises to connect with global markets.
The post From trade deals to exports, how India is putting FTAs to work appeared first on DD India.
