THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 28, 2026

Riding on robust growth in both merchandise and services shipments and expanding market access through a series of free trade agreements (FTAs), India’s total exports touched a record US$863.1 billion in the financial year 2025-26, the government informed Parliament on Tuesday.

According to Minister of State for Commerce and Industry Jitin Prasada, merchandise exports stood at US$441.8 billion, while services exports reached US$421.3 billion, underlining the growing contribution of both segments to India’s export performance.

The Minister said India’s recent trade agreements have significantly widened export opportunities, particularly in the United Arab Emirates (UAE), the United Kingdom, Australia, Oman and EFTA countries, while helping diversify overseas markets and providing a major boost to labour-intensive industries.

Among India’s FTA partners, merchandise exports were the highest to ASEAN countries at US$38.42 billion, followed by the UAE (US$37.36 billion), SAFTA countries (US$25.77 billion), the United Kingdom (US$13.44 billion) and Singapore (US$11.86 billion) during FY26.

Highlighting the growing effectiveness of these trade agreements, the Minister said their utilisation has increased steadily, reflected in the rising issuance of Certificates of Origin (CoO) and broader product coverage across partner markets.

Since the India-UAE Comprehensive Economic Partnership Agreement (CEPA) came into force in May 2022, more than 4.45 lakh Certificates of Origin have been issued. The number of tariff lines exported to the UAE increased from 7,546 in FY22 to 8,053 in FY26, while exports reached US$37.3 billion, indicating greater export diversification and deeper market penetration.

Similarly, under the India-Australia Economic Cooperation and Trade Agreement (ECTA), operational since December 2022, over 2.73 lakh Certificates of Origin have been issued. The number of tariff lines exported to Australia rose from 5,396 to 5,668, while merchandise exports touched US$7.28 billion in FY26.

Jitin Prasada also highlighted encouraging outcomes under the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA). Exports expanded across 4,345 tariff lines, compared with 3,593 tariff lines before the agreement, with exports to Mauritius valued at around US$473 million.

The recently implemented India-Oman CEPA, which came into force on June 1, 2026, has also shown strong early momentum. According to the government, 783 Certificates of Origin have already been issued. Exports to Oman surged to US$622.8 million in June 2026, registering a 54.7% month-on-month increase and a 189.6% year-on-year jump. During the same period, the number of tariff lines exported increased from 2,879 in May to 3,371 in June.

The India-EFTA Trade and Economic Partnership Agreement (TEPA), operational since October 2025, has also witnessed robust utilisation, with 7,885 Certificates of Origin issued so far, the Ministry said.

According to the Ministry, labour-intensive sectors have remained at the centre of India’s recent trade negotiations. Trade agreements with the UAE, Australia, the UK, Oman, New Zealand and EFTA provide enhanced market access for sectors such as textiles and apparel, leather and footwear, gems and jewellery, marine products, carpets, handicrafts and agricultural products, while protecting sensitive domestic industries through calibrated tariff liberalisation.

The agreements provide duty-free or preferential access across a substantial share of partner-country tariff lines, including 99% of Indian exports to the UK, 100% duty-free access to New Zealand, 98% of Oman’s tariff lines, and 99.6% of tariff lines under the India-EFTA TEPA, the Ministry noted.

To further strengthen export promotion, the Department of Commerce has established a comprehensive monitoring framework involving the Directorate General of Foreign Trade (DGFT), Export Promotion Councils, Commodity Boards, line ministries, state governments and Indian Missions abroad.

The Ministry has also expanded digital trade facilitation through platforms such as Trade e-Connect and the Trade Intelligence and Analytics (TIA) Portal, which provide exporters with market intelligence, tariff information, Rules of Origin guidance, buyer-seller information, trade analytics and FTA-related advisory services to help businesses tap global opportunities and maximise the benefits of preferential trade agreements.