FTA Outreach With States: Helping Exporters Actually Use India's Trade Deals
The Department of Commerce is running a series of free trade agreement (FTA) outreach initiatives across the country, together with state governments.
The aim is greater "utilisation" of FTAs, which means getting more exporters to actually claim the lower tariffs (import taxes) these deals offer.
The Union Commerce and Industry Minister said the benefits should reach farmers, workers, women, youth, MSMEs (micro, small and medium enterprises) and small businesses, so they can sell more "Made in India" products abroad.
More such events will be held so that every state can find and use its own export strengths.
In the last five years, India has implemented FTAs with the UAE, Mauritius, Australia, Oman, the EFTA bloc (Switzerland, Norway, Iceland and Liechtenstein), the UK and New Zealand.
FTA Utilisation Rate: Why Signed Trade Deals Often Go Unused
The FTA utilisation rate is the share of eligible trade that actually uses the lower tariffs promised in a free trade agreement. Signing a deal does not cut taxes automatically. An exporter must prove that the goods really come from India and then claim the lower rate. If the exporter skips this step, the goods pay the normal, higher tariff and the benefit is lost. Think of it like a discount coupon that you forget to use at the billing counter.
The Commerce Ministry's outreach drive with states is a direct attempt to raise this utilisation rate. India has signed many new deals recently, but they help the economy only if exporters, especially small ones, actually claim the lower tariffs.
Rules of Origin (RoO)
Rules of origin are the tests that decide where a product "comes from", that is, its economic nationality. A trade deal gives low or zero tariffs only to goods that truly come from a partner country. If a shirt is made in India from imported fabric, the rules of origin decide whether it still counts as "Indian". These rules stop other countries from simply routing their goods through India to grab the FTA benefit.
Rules of origin are the biggest practical hurdle in using an FTA. Outreach events that explain each deal's origin rules in simple terms and local languages help exporters know whether their products qualify, and how to prove it.
Foreign Trade Policy (FTP) 2023
The Foreign Trade Policy (FTP) 2023 is the Government of India's main rulebook for exports and imports. It decides which goods can be freely traded, which need a licence, and what help the government gives to exporters. It came into force on 1 April 2023 with no fixed end date. Its goal is to take India's exports of goods and services to US$ 2 trillion by 2030.
Working with state governments to find each state's export strengths is the "collaboration" pillar of FTP 2023 in action. The FTA outreach builds on the state and district export committees that the policy already set up.
- FTAs implemented by India in the last five years: UAE, Mauritius, Australia, Oman, EFTA, UK, New Zealand
- India-Mauritius CECPA: in force 1 April 2021; India-UAE CEPA: 1 May 2022; India-Australia ECTA: 29 December 2022
- India-EFTA TEPA: in force 1 October 2025; India-UK CETA: 15 July 2026; India-Oman CEPA: 1 June 2026; India-New Zealand FTA: 20 October 2026
- GTRI (June 2026): Indian exporters use FTA benefits on about 20–30% of eligible exports; partners' exporters about 60–70%
- CAROTAR, 2020: in force 21 September 2020 (Section 28DA, Customs Act, 1962)
- FTP 2023: in force 1 April 2023; target US$ 2 trillion exports by 2030