India's Exports Scale Record US$ 863.1 Billion in FY 2025–26, Driven by Strong Trade with UAE, UK and Australia

Key Highlights:

• India's total exports reached a record US$ 863.1 billion in FY 2025-26.
• This includes merchandise exports of US$ 441.8 billion and services exports of US$ 421.3 billion.
• India-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) saw the highest merchandise exports among FTA partners at US$ 37.36 billion.
• Significant export growth was also observed with ASEAN–India Trade in Goods, Services and Investment Agreement (AIFTA) and South Asian Free Trade Area (SAFTA).
• The government monitors Free Trade Agreement (FTA) utilization through Certificates of Origin and partner-country trade data.

Detailed Insights:

• The record export figures reflect the combined strength and growth of both India’s merchandise and services sectors.
• India-UAE CEPA, effective May 2022, led to 4.45 lakh Certificates of Origin issued and increased tariff lines exported to 8,053.
• India-Australia Economic Cooperation and Trade Agreement (ECTA), effective December 2022, resulted in 2.73 lakh Certificates of Origin and expanded export tariff lines to 5,668.
• India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA), effective April 2021, increased export tariff lines to 4,345.
• India-Oman CEPA, effective June 2026, grants duty-free access to 99.38% of India’s exports to Oman.
• The India-EFTA Trade and Economic Partnership Agreement (TEPA), effective October 2025, offers 92.2% of tariff lines for India's exports.
• Recent FTA negotiations prioritize labor-intensive sectors like textiles, leather, gems & jewellery, and agricultural products.
• These agreements aim to provide preferential market access while safeguarding sensitive domestic sectors through calibrated tariff liberalization.
• The government uses platforms like Trade e-Connect and the Trade Intelligence and Analytics (TIA) Portal for trade facilitation and intelligence.

Key Concepts Involved:

• Free Trade Agreement (FTA): A pact between two or more countries to reduce barriers to imports and exports among them.
• Comprehensive Economic Partnership Agreement (CEPA): A broader form of FTA, covering trade in goods, services, investment, and other areas of economic cooperation.
• Economic Cooperation and Trade Agreement (ECTA): A type of trade agreement focusing on economic cooperation and trade facilitation between countries.
• Certificate of Origin: A document certifying that goods in a particular export shipment have been wholly obtained, produced, or processed in a particular country.
• Harmonized System (HS) 8-digit level: An internationally standardized system of names and numbers for classifying traded products, with 8 digits indicating a specific product category.