India’s exports under free trade agreements (FTAs) have reportedly grown at a rate faster than imports, indicating enhanced utilisation of these trade arrangements. Union Minister of Commerce and Industry Piyush Goyal shared insights from a blog post that analysed trade statistics from April to July of the current financial year.

Outbound shipments to countries involved in FTAs surged by 23.9 per cent, amounting to USD 57.2 billion. This contrasts sharply with the 13.9 per cent growth observed in exports to non-FTA markets. Consequently, the share of exports to FTA partners increased from 31.1 per cent to 32.9 per cent during this timeframe, corresponding to rises from USD 46.2 billion to USD 57.2 billion.

Moreover, the trade deficit with FTA partner nations has narrowed slightly, reducing from USD 34.2 billion to USD 32.6 billion. Such figures suggest a notable shift in trade dynamics and efficiency in utilising FTAs.

Growth in Specific Markets

Shipments to Singapore saw remarkable growth, reportedly nearly doubling and contributing approximately USD 4 billion to the overall export increase. Additionally, outbound trade with Oman gained USD 0.6 billion following the implementation of the Comprehensive Economic Partnership Agreement, which took effect on June 1, 2026.

Minister Goyal remarked that exporters are progressively addressing earlier structural challenges, enabling them to take full advantage of these trade pacts. He stated that previous criticisms of India’s FTAs centred on ineffective leverage by exporters, whereas importers maximised their benefits.

Goyal emphasised that tailored access through FTAs presents significant opportunities for Indian exporters, allowing for an expansion into global markets and strengthening their international presence. He noted that exporters are increasingly capitalising on these opportunities to drive higher export levels.

Overall Export Metrics and Future Considerations

During the reported four-month period, India’s total merchandise exports reached USD 173.8 billion, marking a 17 per cent increase when compared to USD 148.5 billion from the same period last year. When combined with services exports valued at USD 145 billion, India’s total exports approached USD 319 billion.

Notably, non-FTA markets also showed significant improvements, particularly within African nations, where demand surged. Tanzania’s imports from India rose by USD 2 billion, while South Africa’s imports increased by USD 1.7 billion and Kenya saw an uplift of USD 1.1 billion.

Minister Goyal mentioned that African markets are young and experiencing growth, making them ideal for Indian exports in sectors such as pharmaceuticals, engineering, automobiles, food products, textiles, and technology. However, he cautioned that analysing a four-month window may not provide a complete picture, as it could include irregular, large shipments that may not recur consistently.

Additionally, agricultural exports saw a rise of 4.5 per cent, amounting to USD 18.18 billion during this period. In particular, basmati rice exports rose by 25.4 per cent to USD 1.05 billion, while shipments of non-basmati milled rice, castor oil, food preparations, shrimp exports, and instant coffee also contributed to this growth.

Imports during the same period reached USD 292.3 billion, largely driven by electronic components valued at USD 21.6 billion, computer hardware at USD 12 billion, and accumulators and batteries at USD 2.8 billion. This trend reflects ongoing advancements in domestic manufacturing and the need for industrial inputs.

In conclusion, Goyal highlighted that recent trends indicate a more promising outlook for Indian exporters and a positive trajectory for the country’s trade relations.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share