Government Expands FTAs and Export Promotion Measures to Diversify Export Markets
The Indian government has undertaken comprehensive initiatives to diversify export markets in response to evolving global geopolitical and economic developments. The strategy centers on expanding Free Trade Agreements (FTAs) and Comprehensive Economic Partnership/Cooperation Agreements (CEPAs/CECAs) to secure preferential market access for Indian exporters. Seven FTAs have been signed since 2021, including agreements with Mauritius (implemented April 1, 2021), UAE (implemented May 1, 2022), Australia (implemented December 29, 2022), European Free Trade Association (EFTA) (implementation scheduled for October 1, 2025), Oman (implementation scheduled for June 1, 2026), UK (implementation scheduled for July 15, 2026), and New Zealand (signed April 27, 2026, under ratification process). Additionally, negotiations have concluded for the India-European Union FTA on January 27, 2026, and an Interim Agreement framework with the United States was announced on February 7, 2026.
Ten ongoing FTA negotiations are currently underway: India-Eurasian Economic Union, India-Peru, India-Chile, India-Israel, India-Canada CEPA, India-Maldives, India-Korea CEPA Upgrade, India-Sri Lanka ETCA Upgrade, India-Australia CECA Upgrade, and ASEAN-India Trade in Goods Agreement Review. These agreements aim to increase bilateral trade through enhanced market access, address non-tariff barriers, and include provisions on Technical Barriers to Trade to promote mutual understanding of standards and technical regulations.
Export Promotion Mission and E-Commerce Initiatives
A significant component is the Export Promotion Mission (EPM) launched in 2025 with a total outlay of ₹25,060 crore for the period FY 2025–26 to FY 2030–31. The EPM operates through two integrated sub-schemes: NIRYAT PROTHSAHAN focuses on improving access to trade finance through instruments such as interest subvention, export factoring, collateral guarantees for export credit, credit guarantee for e-commerce exporters, and credit enhancement support; while NIRYAT DISHA focuses on other trade enablers including export quality and compliance support, international branding and packaging, market access initiatives, export logistics & warehousing, and trade intelligence.
For e-commerce exports, the government has implemented the E-Commerce Export Hub (ECEH) initiative on a pilot basis to create an integrated ecosystem facilitating logistics, customs clearances, and other export-related services. Major reforms include the removal of the per-consignment value limit of ₹10 lakh for exports through courier mode via DGFT Notification No. 67/2025–26 dated March 27, 2026 and CBIC Notification No. 34/2026 dated March 31, 2026. The RBI has relaxed export reconciliation requirements for small-value exports up to ₹10 lakh by permitting closure of export transactions in the Export Data Processing and Monitoring System (EDPMS) based on declarations furnished by exporters. CBIC Notification No. 33/2026 dated March 31, 2026 has simplified reverse logistics by facilitating the re-import of export rejects and returned goods for cross-border e-commerce exports.
MSME Support and District-Level Initiatives
The District Export Hub (DEH) Initiative provides a district-level framework for decentralized export promotion, identifying and prioritizing 3–5 products/services with viable export potential in each district for targeted interventions. The Ministry of Micro, Small and Medium Enterprises has established 65 Export Facilitation Centers (EFCs) in field offices across the country to provide mentoring and handholding support to MSMEs. The International Cooperation (IC) Scheme aims to build MSME capacity by facilitating participation in international exhibitions/fairs/conferences/seminar/buyer-seller meets abroad with cost reimbursement.
Additional Support Measures
Other measures include the PM Gati Shakti National Master Plan (NMP) to facilitate data-based decisions for integrated planning of multimodal infrastructure and reduce logistics costs. The Refund of Duties and Taxes on Exported Products (RoDTEP) Scheme aims to refund currently un-refunded duties/taxes/levies borne on export products, including prior stage cumulative indirect taxes on goods and services used in production. The government engages with trading partners through bilateral, regional and multilateral mechanisms to address non-tariff barriers (NTBs), including regular meetings through Joint Committees and Working Groups established under trade agreements, consultations on sanitary and phytosanitary (SPS) measures, and technical barriers to trade (TBT).