Background
Exports are a key driver of India's economic growth, employment generation, foreign exchange earnings, and integration with global value chains.
India has increasingly adopted a strategy of negotiating comprehensive Free Trade Agreements (FTAs) to secure preferential market access and reduce tariff and non-tariff barriers.
Recent agreements such as the India-UAE CEPA, India-Australia ECTA, India-Mauritius CECPA, India-EFTA TEPA, and the India-UK CETA have significantly expanded export opportunities.
The government has also introduced digital platforms like Trade e-Connect and the Trade Intelligence & Analytics (TIA) Portal to support exporters with market intelligence and trade analytics.
Features
Record Export Performance
Total exports: US$ 863.1 billion
Merchandise exports: US$ 441.8 billion
Services exports: US$ 421.3 billion
Major Export Destinations under FTAs
ASEAN: US$ 38.4 billion
UAE (CEPA): US$ 37.4 billion
SAFTA: US$ 25.8 billion
UK (CETA): US$ 13.4 billion
Singapore (CECA): US$ 11.9 billion
Impact of Recent FTAs
UAE CEPA: 4.45 lakh Certificates of Origin issued; tariff lines expanded from 7,546 to 8,053.
Australia ECTA: Certificates of Origin increased from 1,482 (FY21) to over 45,500 annually after implementation.
Mauritius CECPA: Export tariff lines increased by 20.9%.
Oman CEPA: June 2026 exports increased 54.7% month-on-month and 189.6% year-on-year.
India-EFTA TEPA: More than 7,885 Certificates of Origin issued since October 2025.
Beneficiary Sectors
Textiles and apparel
Leather and footwear
Gems and jewellery
Marine products
Carpets and handicrafts
Agricultural products
Trade Facilitation Measures
Trade e-Connect: Provides market intelligence, tariff information, Rules of Origin guidance, and FTA advisory services.
Trade Intelligence
Challenge
Economic downturn across the world and low external demand.
Increasingly protectionist measures and non-tariff barriers in major export destinations.
Cost of logistics and transport impacting the competitiveness of exports.
Rejection of goods due to heavy reliance on a few items and markets.
Meeting stricter environmental and sustainability standards like carbon border mechanisms.
Infrastructure issues and procedural problems for MSME exporters.
Way forward
Create export opportunities through the signing of new FTAs and increased involvement of emerging countries.
Create a competitive advantage in manufacturing through programs such as Make in India and the Production Linked Incentive (PLI) Scheme.
Make the logistics system efficient through the PM Gati Shakti National Master Plan and multimodal transportation systems.
Increase the participation of MSMEs in the manufacturing industry by providing them with more access to financial and technical support.
Encourage exports of both value-added products and high-technology products in addition to labour-intensive industries.
Digitise trade activities and make customs processes easy.
Conclusion
The highest-ever exports of US$ 863.1 billion achieved by India in FY 2025-26 is indeed a notable moment for the country in its pursuit of becoming an export power in the global arena. The excellent performance on the front of exports in merchandise and services, coupled with efficient FTAs and digital trade facilitation measures, has made India more competitive internationally. However, consistent policy reforms, diversification of exports, better logistics, and enhanced manufacturing will remain necessary for the ultimate goal.
