India's FTA Export Performance and Trade Agreement Utilization

India's expanding network of Free Trade Agreements has contributed significantly to record export performance, with combined merchandise and services exports reaching US$ 863.1 billion in FY 2025-26, including merchandise exports of US$ 441.8 billion. The momentum continued into FY 2026-27 with April-June 2026 combined exports estimated at US$ 232.73 billion, representing an 11.37% increase from the corresponding period last year.

Key FTA Export Markets and Performance

Among India's FTA partners, the UAE emerged as the largest individual export destination with merchandise exports worth US$ 37,359.11 million in FY 2025-26, followed by ASEAN countries at US$ 38,416.33 million and SAFTA nations at US$ 25,774.68 million. Other significant FTA export markets included the United Kingdom (US$ 13,444.19 million), Singapore (US$ 11,863.66 million), Nepal (US$ 7,447.11 million), Australia (US$ 7,284.17 million), and Malaysia (US$ 6,825.55 million).

Success Stories: UAE CEPA and Australia ECTA

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), implemented on 1 May 2022 after record 88-day negotiations, drove bilateral trade to cross US$ 100.06 billion in FY 2024-25 with 19.6% growth, leading to a new target of US$ 200 billion by 2032. The India-Australia Economic Cooperation and Trade Agreement (ECTA), effective from 29 December 2022, facilitated 80%+ export growth from US$ 4 billion in FY 2020-21 to US$ 7.28 billion in FY 2025-26, with Australia providing immediate zero-duty access across 98.3% of tariff lines and complete duty-free access for all Indian exports from 2026 onwards.

Export Facilitation Measures

Government initiatives have supported increased utilization of FTA benefits through the e-CoO 2.0 system providing end-to-end digital issuance of preferential Certificates of Origin with Aadhaar-based electronic signatures and QR-code verification. Simplified rules under newer agreements include self-declaration origin establishment under India-EFTA TEPA and India-UK CETA, importer's knowledge and waived documentation for consignments below £1,000 under the UK agreement, and multiple product inclusion in single CoOs under the India-Australia ECTA. The Trade Connect platform complements these measures with its Tariff Explorer and trade guidance services.

Product Diversification and Market Access

Significant expansion occurred in exported tariff lines across FTA markets: UAE saw 6.7% increase from 7,546 lines (2021-22) to 8,053 lines (2025-26), Australia increased 5.0% from 5,396 lines (2020-21) to 5,668 lines, Mauritius expanded 20.9% from 3,593 lines (2021-22) to 4,345 lines, and Oman grew 17.08% from 2,879 lines (May 2026) to 3,371 lines (June 2026). Recent FTAs provide extensive market access coverage: India-UK CETA (99% duty-free access), India-Oman CEPA (98% tariff line coverage), India-EFTA TEPA (92.2% tariff lines covering 99.6% of exports), India-Mauritius CECPA (310 product lines), India-UAE CEPA (97% tariff lines covering 99% of exports), and India-Australia ECTA (100% duty-free access).

Services Sector Opportunities

With services accounting for nearly 30% of India's employment and exports reaching US$ 421.3 billion in FY 2025-26, recent FTAs have expanded opportunities through dedicated pathways for skilled professionals (India-New Zealand FTA provides for 5,000 skilled Indians across IT, engineering, healthcare, education, construction, AYUSH, yoga, culinary arts and music), commitments across 118-144 services sub-sectors, MFN treatment provisions, mobility frameworks for business visitors and intra-corporate transferees, Double Contribution Convention preventing dual social-security payments (estimated savings exceeding ₹4,000 crore under India-UK CETA), and Mutual Recognition Agreements in nursing, chartered accountancy and architecture under India-EFTA TEPA.

Future Trade Agenda

India is currently negotiating around ten trade agreements including with Eurasian Economic Union, Peru, Chile, Israel, Canada and Maldives, while upgrading existing agreements such as India-Korea CEPA and India-Sri Lanka ETCA. The comprehensive approach aims to widen export participation, diversify trade, and strengthen commercial relationships with partner markets in support of India's journey towards Viksit Bharat by 2047.