India's big billion-dollar trade deals are done. Now comes the real test
India has concluded a series of major free trade agreements in recent years, including with the United Arab Emirates, Australia, the European Free Trade Association (EFTA) bloc, and the United Kingdom, in addition to older agreements.
Data shows exports to India's FTA partner countries reached about USD 179.1 billion in FY 2025-26, accounting for roughly 40.5% of India's total merchandise exports for the year.
The core policy challenge identified is "FTA utilisation" — the extent to which exporters actually claim preferential tariff treatment using Certificates/Proofs of Origin, rather than exporting under standard Most Favoured Nation (MFN) rates.
Sector-specific and procedural barriers — rules of origin compliance costs, certification processes, and limited exporter awareness — are flagged as constraints on translating market access into actual trade, investment and manufacturing gains.
FTA vs CEPA vs ECTA — Distinguishing India's Trade Agreement Types
India's trade agreements vary in scope and depth: Free Trade Agreements (FTAs) typically cover goods tariff liberalization; Comprehensive Economic Partnership/Cooperation Agreements (CEPA/CECA) extend to services, investment and other economic areas; Economic Cooperation and Trade Agreements (ECTA) are a similar comprehensive format used in specific negotiations.
Key Details
- India-UAE CEPA: signed 18 February 2022, entered into force 1 May 2022 — India's first FTA to explicitly use "Proof of Origin" terminology in its Rules of Origin chapter; eliminated tariffs on over 80% of tariff lines.
- India-Australia ECTA: signed December 2022, entered into force December 2022 — provides immediate duty-free access for over 96% of India's exports to Australia by value.
- India-UK Comprehensive Economic and Trade Agreement (CETA): concluded/signed in July 2025, with UK tariff elimination on Indian textiles, garments, leather, footwear, processed foods and engineering goods phased over 7-10 years.
- India-EFTA Trade and Economic Partnership Agreement (TEPA) — with Iceland, Liechtenstein, Norway, Switzerland — entered into force in October 2025, covering roughly 92.2% of tariff lines and 99.6% of India's exports by value.
The article's framing of "deals are done, now comes the real test" reflects the shift in India's trade agenda from negotiating market access (FTA/CEPA/ECTA text) to ensuring exporters actually use the preferential access created.
FTA Utilisation Rate and Certificate/Proof of Origin
FTA utilisation measures the proportion of eligible exports that actually claim preferential tariffs under an FTA (using a Certificate of Origin or Proof of Origin) versus exporting under standard MFN duty rates — low utilisation means negotiated tariff concessions go unused.
Key Details
- Under India-UAE CEPA, 4.45 lakh Certificates of Origin had been issued since the pact's entry into force, indicating active exporter uptake.
- Under India-EFTA TEPA, 7,885 Certificates of Origin were issued in the period following its October 2025 entry into force.
- The Central Board of Indirect Taxes and Customs (CBIC) administers the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020), which requires importers to exercise "reasonable care" in claiming preferential tariff treatment and to possess supporting origin documentation.
- A March 2025 notification updated CAROTAR terminology from "Certificate of Origin" to the broader "Proof of Origin," accommodating self-certification by approved/registered exporters under newer-generation FTAs such as UAE CEPA and Australia ECTA.
Improving FTA utilisation directly requires simplifying rules-of-origin compliance and origin certification — the exact procedural friction the article identifies as separating "signed deals" from "realised trade gains."
Institutional Architecture for India's Trade Negotiations — Department of Commerce and DGFT
India's FTA negotiations and implementation are anchored in the Department of Commerce (Ministry of Commerce and Industry), with the Directorate General of Foreign Trade (DGFT) administering the Foreign Trade Policy and trade facilitation instruments that support FTA utilisation.
Key Details
- The Department of Commerce leads FTA negotiations bilaterally and coordinates with line ministries on tariff schedules and sensitive product lists (e.g., agriculture, dairy typically kept out of significant concessions in Indian FTAs).
- DGFT issues procedural guidance and, for many agreements, notifies the format for preferential Certificates/Proofs of Origin used by exporters to claim FTA benefits.
- The Foreign Trade Policy 2023 (in force since 1 April 2023) emphasizes export promotion, ease of doing business, and remission-based schemes (such as RoDTEP) to complement FTA-driven market access.
- Export promotion councils and industry bodies play a supporting role in disseminating FTA-specific compliance requirements to small and medium exporters, who typically show lower utilisation rates than large exporters.
The article's "real test" for India's FTAs is fundamentally an institutional and capacity-building challenge — ensuring DGFT/Department of Commerce processes and exporter awareness keep pace with the tariff concessions already negotiated.
- India's exports to FTA partner countries in FY 2025-26: approximately USD 179.1 billion, about 40.5% of total merchandise exports.
- India's overall exports (goods + services) in FY 2025-26: a record USD 863.1 billion (merchandise: USD 441.8 billion; services: USD 421.3 billion).
- India-UAE CEPA: in force from 1 May 2022; exports to UAE grew from USD 16.7 billion (2021-22) to USD 37.4 billion (2025-26); 4.45 lakh Certificates of Origin issued.
- India-Australia ECTA: in force from December 2022; over 96% of India's exports get immediate duty-free access; 5,668 tariff lines covered.
- India-UK CETA: concluded July 2025; UK merchandise exports from India reached USD 13.44 billion in FY 2025-26.
- India-EFTA TEPA: in force from October 2025; covers 92.2% of tariff lines / 99.6% of India's exports by value; 7,885 Certificates of Origin issued.
- CAROTAR, 2020: governing rules for claiming preferential tariff treatment under Indian FTAs, administered by CBIC.