FTA partner countries and blocs accounted for 40.5% of India's merchandise exports in 2025-26, with shipments to these markets touching $179.1 billion.
India's combined goods and services exports rose to $863.1 billion in 2025-26 from $776.4 billion in 2022-23, despite global trade headwinds.
Exports to the UAE and Australia nearly doubled following the CEPA and ECTA agreements respectively, while the India-EU FTA talks concluded in January 2026.
FTA Partners Account For 40.5% Of India's Merchandise Exports in FY26
Trade with the four-nation EFTA bloc, comprising Iceland, Liechtenstein, Norway and Switzerland, grew at a slower pace, moving from $1.64 billion in 2019-20 to $1.76 billion in 2025-26
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Summary
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India shipped $179.1 billion worth of goods to countries and trade blocs it holds free trade agreements (FTAs) with in 2025-26, making up 40.5% of the country's total merchandise exports for the year. Minister of State for Commerce and Industry Jitin Prasada shared these figures in a written reply to the Rajya Sabha on July 24.
Commerce Ministry data put total merchandise exports for 2025-26 at $441.78 billion, a marginal rise from $437.70 billion the year before.
Prasada credited the FTAs with opening doors for Indian exporters, pointing to wider access to partner markets, fewer trade barriers and stronger supply chain ties built through these deals.
India's combined exports of goods and services touched $863.1 billion in 2025-26, climbing from $776.4 billion three years earlier in 2022-23, Prasada said. This came even as exporters navigated geopolitical strain and disruptions across global supply chains.
Trade Deals Lift Bilateral Numbers
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) appears to have paid off for exporters, with shipments to the UAE more than doubling, from $16.7 billion in 2021-22, the year before the pact took effect, to $37.4 billion in 2025-26.
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A similar pattern played out with Australia. Exports nearly doubled from $4 billion in 2021-22 to $7.3 billion in 2025-26, following the India-Australia Economic Cooperation and Trade Agreement (ECTA).
Trade with the four-nation EFTA bloc, comprising Iceland, Liechtenstein, Norway and Switzerland, grew at a slower pace, moving from $1.64 billion in 2019-20 to $1.76 billion in 2025-26.
Govt Steps Up Exporter Outreach
To help exporters make the most of these agreements, Prasada said the government runs regular outreach sessions involving Indian missions overseas, Export Promotion Councils, industry bodies, commodity boards and DGFT field offices.
He also flagged the Export Promotion Mission, rolled out in 2025 with a ₹25,060 crore budget running through FY 2030-31, meant to sharpen export competitiveness through trade finance, quality compliance support, branding help, logistics and market access work.
On origin verification, Prasada said India's FTAs come with digital Certificates of Origin and built-in checks to stop goods routed through third countries from entering under a partner nation's tariff benefits.
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Services Sector in Focus
Prasada said ongoing FTA talks aim to secure better market access for Indian service providers, spanning digital services, business presence abroad and short-term mobility for skilled workers.
"India's recent FTAs have incorporated disciplines on domestic regulation to ensure that authorisation processes are time-bound, predictable, objective, impartial and transparent," he said, adding that Mutual Recognition Agreements built into these deals help Indian professionals skip repeat exams or lengthy re-certification abroad.
Prasada noted that the India-New Zealand FTA, signed on April 27, 2026, is now in the ratification stage, while negotiations for the India-EU FTA wrapped up on January 27, 2026. He added that India and the US reached a framework in February for an interim reciprocal trade deal, with talks still ongoing.