{
  "id": 5624226,
  "title": "New FTAs open big export gains across key sectors",
  "url": "https://urgent.news/2026/09/04/new-ftas-open-big-export-gains-across-key-sectors",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-04T18:31:45.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/foreign-trade/new-ftas-open-big-export-gains-across-key-sectors/articleshow/133775043.cms"
  },
  "original_language": "en",
  "account": "New Delhi: In the past five years, India has established eight new free trade agreements (FTAs), unlocking significant export potential across critical sectors. According to an analysis by the commerce and industry ministry, these agreements have created opportunities worth $982 billion for electronics, $631 billion for agriculture, and $442 billion for gems and jewellery. Engineering goods, chemicals, and pharmaceuticals emerge as other high-potential manufacturing areas.\n\nTwo FTAs with New Zealand and the EU, which have yet to take effect, are expected to further boost India's exports. The analysis examined trade pacts with the UK, UAE, Oman, Australia, EFTA (comprising Iceland, Liechtenstein, Norway, and Switzerland), and Mauritius.\n\nDespite a meager 1.23% market share in 2024, India's imports from the EU amounted to $6.62 trillion. Similarly, the UK's merchandise imports from the world stood at $815.6 billion, with India contributing only 1.88%. The engineering goods sector offers a staggering $3 trillion opportunity, while labour-intensive sectors like marine and leather each present a $70 billion-plus market.\n\nOfficial estimates attribute this growth to robust expansion in manufacturing, engineering goods, electronics, chemicals, pharmaceuticals, food products, and consumer goods. Diversifying markets beyond traditional destinations has bolstered export resilience and expanded India's participation in regional value chains. The duty-free access provided by these new trade pacts has been instrumental in driving trade expansion.\n\nFor instance, India's exports to the UAE climbed to $37.3 billion in FY26, up from $28 billion in FY22, driven by increased silk, machinery, and carpet shipments. The India-UAE Comprehensive Economic Partnership Agreement went into effect on May 1, 2022, while EFTA saw stable outbound shipments of approximately $1.7 billion.\n\nHowever, exports to Australia declined to $7.3 billion in 2025-26, down from $8.3 billion in FY22, despite growth in food product and pharmaceutical exports. The India-Australia Economic Cooperation and Trade Agreement came into force on December 29, 2022. The official noted that while India's trade deficit with Australia reduced to $6.5 billion last fiscal from $8.5 billion in FY22, a significant portion of this imbalance stems from raw material imports used for manufacturing and exports.",
  "summary": "The introduction of eight free trade agreements heralds a new era of duty-free market access, particularly benefiting the electronics, agriculture, and gems and jewellery sectors. With India’s share in EU and UK imports being relatively low, these pacts open doors for substantial growth. Boosting export resilience and diversifying market opportunities are key advantages for Indian businesses.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}