Free Trade Agreements Accelerate India’s Export Growth, Boost Global Market Access And Strengthen Trade Prospects

New Delhi: Recent export figures highlight the expanding significance of India's new free trade agreement (FTA) partners, with observable growth in early exports, increased use of preferential certificates of origin, and a broader spectrum of exported goods, according to a government factsheet released on Tuesday. This shift reveals an increasing number of businesses engaging with the opportunities presented by these agreements, supported by government measures facilitating exporters' access to preferential benefits and entry into new markets.

Major global markets now form part of India's trade partnerships, broadening opportunities for exporters. In the fiscal year 2025-26, combined merchandise and services exports reached a record $863.1 billion, with merchandise exports alone amounting to $441.8 billion. This growth has persisted in the fiscal year 2026-27, with combined exports for April-June estimated at $232.73 billion, marking an 11.37 percent increase compared to the same period in the previous year, as per the factsheet.

Among these markets, the UAE and Australia, which exceeded $37.35 billion and $7.28 billion respectively, exemplify the initial progress under India's recent trade agreements. The extent of an FTA is also reflected in the variety of products entering partner markets, which demonstrates the product-level expansion across several of India's recent agreements.

To utilize a trade agreement's preferential market access, exporters typically need to provide proof of origin for their goods, establishing their eligibility for reduced or zero customs duties under the agreement's terms. A preferential Certificate of Origin confirms that goods meet the specified rules of origin, allowing qualifying products to benefit from lower or zero customs duties.

Utilization of tariff concessions is evident across agreements at various stages of implementation. The UAE Comprehensive Economic Partnership Agreement (CEPA) and Australia Economic Cooperation Agreement (ECTA), both operational since 2022, have generated a substantial number of origin certifications, indicating high utilization of tariff concessions.

Similarly, the Economic Cooperation Agreement with the European Free Trade Association (EFTA), which began in October 2025, has issued 7,885 certificates of origin, while the Oman CEPA, implemented in June 2026, has resulted in 783 such certificates. The rise in preferential certificate issuance is backed by government efforts to streamline procedures for exporters, as indicated in the factsheet.