Goyal calls for nationwide push to unlock export benefits under FTAs
The Union Commerce and Industry Ministry launched a national outreach programme, "Leveraging FTAs," at Bharat Mandapam, New Delhi, to help exporters use preferential tariffs available under India's Free Trade Agreements (FTAs).
The Ministry stated the initiative would be extended across all 780 districts of the country to reach small businesses, traders, startups, and women entrepreneurs.
India's existing FTAs, covering economies representing about USD 60 trillion in combined GDP, currently give preferential access to nearly two-thirds of global trade.
Agreements under negotiation or review — including with Canada, Mexico, Chile, Mercosur, the Southern African Customs Union (SACU), the Gulf Cooperation Council (GCC), and Israel, alongside reviews of the ASEAN, Korea, and Japan agreements — are projected to extend India's preferential access to about 75% of global trade.
The announcement came against the backdrop of India recording 7.8% GDP growth in the April-June quarter of 2026-27, cited as a sign of resilience amid global trade uncertainty.
Free Trade Agreements (FTA) and their variants
An FTA is a treaty between two or more countries that reduces or eliminates tariffs and non-tariff barriers on a substantial portion of trade between them. India uses several formats: a plain FTA (goods focus), a Comprehensive Economic Cooperation Agreement/CECA (goods, services, investment), and a Comprehensive Economic Partnership Agreement/CEPA (broadest, includes IPR, government procurement, e-commerce). Trade is administered under the Foreign Trade (Development and Regulation) Act, 1992, through the Foreign Trade Policy notified by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry.
Key Details
- India's major FTAs in force include ASEAN-India FTA (2010), India-Japan CEPA (2011), India-Korea CEPA (2010), India-Mauritius CECPA (2021), India-UAE CEPA (2022), India-Australia Economic Cooperation and Trade Agreement/ECTA (2022), and India-EFTA Trade and Economic Partnership Agreement/TEPA (2024).
- "Rules of origin" provisions determine which goods qualify for preferential tariffs under an FTA, preventing routing of third-country goods through a partner country.
- A Trade Agreement (binding under international law, ratified by the Cabinet Committee on Economic Affairs) is distinct from a Memorandum of Understanding (non-binding statement of intent).
The outreach programme is meant to close the "FTA utilisation gap" — the fact that many eligible Indian exporters, especially MSMEs, do not claim preferential tariffs because they are unaware of rules-of-origin certification and documentation requirements.
India-EU Free Trade Agreement (concluded January 2026)
The European Union and India concluded negotiations on a free trade agreement on 27 January 2026, after roughly two decades of on-and-off talks. It is the largest trade agreement either side has concluded, creating a free trade area of about two billion people and roughly a quarter of global GDP.
The India-EU deal is one of the anchor agreements the Commerce Ministry is citing while urging exporters nationwide to prepare to use tariff concessions once agreements come into force.
Districts as Export Hubs (Foreign Trade Policy 2023)
This is a DGFT initiative under the Foreign Trade Policy 2023 that treats each district as a potential export hub by identifying local products/services with export potential and building a District Export Action Plan. A District Export Promotion Committee, chaired by the District Collector/District Magistrate, coordinates the plan with state and central agencies.
Key Details
- The initiative works alongside DGFT's Niryat Bandhu Scheme, which mentors new and potential exporters through counselling and training.
- It supports the government's target of expanding India's economy toward USD 30 trillion by 2047, with trade as a growth driver.
The call to extend FTA benefits to "all 780 districts" directly mirrors the geographic architecture of the Districts as Export Hubs framework, indicating the FTA outreach programme is designed to plug into this existing institutional mechanism.
- India's FTAs currently cover economies worth about USD 60 trillion in GDP, giving access to nearly two-thirds of global trade; upcoming agreements aim to raise this to 75%.
- India-EU FTA (concluded 27 January 2026): tariff liberalisation of 96.6% (India) and 99.3% (EU); combined market of about 2 billion people and 25% of world GDP.
- India's GDP grew 7.8% in Q1 FY27 (April-June 2026), up from 6.9% in the same quarter a year earlier and above the RBI's 7% estimate.
- The Foreign Trade Policy 2023's Districts as Export Hubs initiative spans all districts of India, with District Export Action Plans as the core planning document.