India FTAs Expand Across Key Export Markets

India FTAs expanding across key export markets

India FTAs Expand Across Key Export Markets

πŸ“Œ Source: PIB Backgrounder, PIB Research | Date: 18 August 2026 

Quick check: do you know if the country you're exporting to has a trade deal with India? And if it does, are you actually using it — or paying full duty like there's no agreement at all?

A lot of exporters fall into the second group without realising it. India now has a wide network of trade agreements, but having an agreement in place and using its benefits are two different things. This new government backgrounder makes that gap pretty visible — and also shows which agreements are actually converting into real export money right now.

The short version: India's combined exports hit a record $863.1 billion in FY 2025-26. Growth has kept going too — April-June 2026 exports were up 11.37% year-on-year. A meaningful chunk of that is flowing through trade agreements, with the UAE alone taking in over $37 billion of Indian goods in a single year.

Where India's FTA exports are actually going

Market India's Exports There, FY 2025-26
ASEAN (bloc) $38.42 billion
SAFTA (bloc) $25.77 billion
UAE $37.36 billion
United Kingdom $13.44 billion
Singapore $11.86 billion
Australia $7.28 billion
Oman $4.02 billion

The UAE deal stands out here — it is India's largest FTA export market by value, ahead of several regional blocs. It is worth looking at why the agreement has delivered such a strong result.

How the UAE became India's biggest trade agreement win

The India-UAE deal — CEPA — came into force back in May 2022. It was India's first complete free trade agreement in a decade, and it got negotiated in just 88 days, which is unusually fast for a trade deal.

The results followed quickly. Bilateral trade crossed $100 billion by FY 2024-25 — just three years after the deal kicked in. Growth that year alone was 19.6%. Both countries are now aiming to double that to $200 billion by 2032.

If you're exporting to the UAE and are not sure whether you're claiming the CEPA benefit, it is worth checking the applicable provisions before your next shipment.

Australia's deal is getting better every year — literally

The India-Australia agreement (ECTA) came into force in December 2022 — India's first trade agreement with a developed economy in more than ten years. Exports have grown since then, and the agreement has continued to expand its coverage.

India's exports to Australia grew from $4 billion in FY 2020-21 to $7.28 billion in FY 2025-26 — more than 80% growth. More importantly for exporters, from 2026 onwards, all Indian exports get zero-duty access into Australia. The change covers all products, rather than only selected categories.

What that means in practice: What that means in practice: if you're exporting to Australia and were told a few years ago that your product category wasn't covered under the agreement, that information may now be outdated. Check the current tariff provisions before assuming the product remains excluded.

The paperwork problem — and how it's getting easier

One part of trade agreements often causes confusion: getting the discounted duty isn't automatic. You need to prove that your goods qualify — usually through a Certificate of Origin (CoO). Without that documentation, the buyer may have to pay the applicable standard duty even when a preferential rate is available under the agreement.

The good news is this process has gotten a lot less painful recently.

e-CoO 2.0 allows Certificates of Origin to be issued online, reducing the need for physical paperwork and visits to chambers of commerce. It uses Aadhaar-based digital signatures and QR code verification, so it's faster to issue and easier to verify at the other end too.

Some agreements go even further. Under the India-EFTA and India-UK deals, you can now self-declare your goods' origin instead of getting third-party certification for every shipment. The UK deal goes a step further still — if your shipment is worth less than £1,000, you don't need origin documentation at all. That's specifically built for small businesses and e-commerce sellers who ship smaller, frequent orders.

Illustrative example: Suppose you run a small business selling handmade textiles to a UK buyer and your shipment is worth £800. Under the old process, you would need a formal Certificate of Origin before your buyer could claim the applicable duty benefit. That process could take additional time and involve extra documentation. Under the new UK CETA rule, a shipment under £1,000 doesn't need that documentation at all. Your buyer still gets the preferential treatment, and you've skipped a paperwork step entirely.

More products are actually making it into these markets

It's not just certificate volumes that are increasing — the range of products being exported under these agreements is widening too.

Market Product Lines Then Product Lines Now (2025-26)
UAE 7,546 (2021-22) 8,053 — up 6.7%
Australia 5,396 (2020-21) 5,668 — up 5.0%
Mauritius 3,593 (2021-22) 4,345 — up 20.9%
Oman 2,879 (May 2026) 3,371 (June 2026) — up 17.08%

Mauritius and Oman, with growth of more than 20% and 17% respectively, point to a broader trend: new exporters appear to be using these agreements alongside established exporters.

If you're in services, not goods, this affects you too

Much of the discussion above concerns physical goods. But India's FTAs also cover services, an important part of the country's trade and employment landscape.They already made up $421.3 billion of India's exports in FY 2025-26, and services account for nearly 30% of all employment in the country.

For professionals, consultants and services businesses, several provisions are worth noting:

The India-New Zealand deal creates a pathway for up to 5,000 skilled Indian professionals to work there for up to three years, covering fields such as IT, engineering, healthcare, education, construction and AYUSH.

The India-UK deal includes provisions for professionals entering the UK for work, while its Double Contribution Convention is intended to prevent covered workers from paying social security contributions in both countries. That's estimated to save over ₹4,000 crore collectively for people covered by it.

The India-EFTA deal includes Mutual Recognition Agreements covering nursing, chartered accountancy and architecture, which can help eligible Indian professionals have their qualifications recognised in member countries..

If these provisions apply to your field, check the specific terms of the agreement rather than assuming that trade agreements only concern physical goods.

What's still coming 

India is continuing to expand its trade-agreement network. Around ten more trade agreements are currently under discussion — including talks with the Eurasian Economic Union, Peru, Chile, Israel, Canada, and Maldives. Existing agreements with South Korea and Sri Lanka are also being discussed for further expansion or revision.

The key takeaway: India now has a broad network of trade agreements. For exporters, the practical step is to check whether the relevant product and market are covered and then complete the required Certificate of Origin process to claim preferential treatment. Tools such as e-CoO 2.0, self-declaration options and the Trade Connect platform for MSMEs are already available. The practical challenge is ensuring that exporters know when and how to use them.

Follow Exim News 24 for daily trade news, policy updates, and practical insights on India's export-import sector.

Frequently Asked Questions (FAQs)

1. What do India’s trade agreements mean for exporters?

 India’s trade agreements can give eligible Indian exporters preferential access to certain markets, but the benefit depends on the product, destination country and the specific rules of the agreement. Exporters should check whether their product qualifies and follow the required Certificate of Origin process.

2. How can exporters claim the benefits available under an FTA?

 Exporters need to check whether their product and destination are covered by the relevant agreement and whether they meet its requirements. Depending on the agreement, exporters may need a Certificate of Origin or may be able to use applicable self-declaration procedures. The article also notes the availability of e-CoO 2.0 and other digital tools that make the process easier.

3. Why does the growth in FTA-covered product lines matter to Indian exporters?

A wider range of products being exported under these agreements indicates that the benefits are extending beyond a limited group of products. The article highlights increases in product lines for markets including the UAE, Australia, Mauritius and Oman. However, higher product coverage alone does not guarantee preferential treatment; exporters still need to verify the applicable agreement, product eligibility and origin requirements before claiming the benefit.


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Disclaimer: All information in this post is sourced from the official PIB Backgrounder "Signed, Sealed and Exporting: India's Trade Agreements in Action," published 18 August 2026 (Release ID: 2300733), PIB Research, Government of India. This post is for informational and awareness purposes only.