India's exports under FTAs grew faster than imports

In April to July of the current financial year, India's exports under free trade agreements (FTAs) are growing faster than imports, according to Union Commerce Minister Piyush Goyal. The minister's analysis of trade data shows that outbound shipments to FTA partner countries increased by 23.9 percent to $57.2 billion, while shipments to non-FTA markets grew by 13.9 percent.

This led to FTA partners' share in India's total exports rising from 31.1 percent to 32.9 percent. The trade deficit with FTA partners narrowed from $34.2 billion to $32.6 billion.

Singapore's exports nearly doubled, contributing around $4 billion to export growth, while Oman's outbound trade increased by $0.6 billion following the implementation of the Comprehensive Economic Partnership Agreement on June 1, 2026. Goyal noted that exporters are gradually overcoming structural bottlenecks to benefit from these pacts.

He pointed out that India's free trade agreements were previously criticized for not being utilized to their full potential. However, this time, exporters are leveraging the opportunities provided by FTAs to expand their global footprint, access new markets, and deepen their international presence.

India's overall merchandise exports for the four-month period reached $173.8 billion, reflecting a 17 percent increase compared to $148.5 billion during the same period last year. Combined with services exports of $145 billion, India's total exports stood at nearly $319 billion. African markets, in particular, have shown significant gains, with inbound demand from Tanzania increasing by $2 billion, South Africa adding $1.7 billion, and Kenya recording a $1.1 billion rise.

Agricultural exports rose by 4.5 percent to $18.18 billion during the period. Shipments of basmati rice increased by 25.4 percent to $1.05 billion, non-basmati milled rice totaled $588 million, castor oil stood at $423 million, other food preparations reached $284 million, shrimp and prawn exports touched $226 million, and instant coffee exceeded $200 million.

Goyal emphasized that the imports for the period rose to $292.3 billion, led by electronic components, computer hardware and peripherals, and accumulators and batteries, reflecting ongoing expansion in domestic manufacturing and industrial input requirements.