India's free trade agreements are delivering measurable early gains, with combined merchandise and services exports hitting a record $863.1 billion in FY 2025-26 — including merchandise exports of $441.8 billion — according to a factsheet released by the government on Tuesday, 18 August. The data points to a structural shift in how Indian exporters are engaging with preferential trade partners, evidenced by rising tariff utilisation and a broader product mix reaching FTA markets.

Export Momentum Carries Into FY27

The strong FY26 performance has carried forward into the current fiscal year. Combined exports during April–June 2026 are estimated at $232.73 billion, up 11.37% over the same period last year, the factsheet stated. Officials attributed part of this momentum to exporters increasingly claiming preferential benefits under active trade agreements, rather than trading on standard most-favoured-nation terms.

UAE and Australia Lead Early FTA Gains

Among India's FTA partner markets, the UAE crossed $37.35 billion in merchandise exports, while Australia surpassed $7.28 billion, reflecting early progress under the UAE Comprehensive Economic Partnership Agreement (CEPA) and the Australia–India Economic Cooperation and Trade Agreement (ECTA), both operational since 2022. The factsheet noted that the reach of an FTA is also visible in the wider range of products entering partner markets — a product-level expansion observed across several recent agreements.

Certificate of Origin Issuance Signals Rising Utilisation

A key indicator of how actively exporters are using FTA benefits is the volume of preferential Certificates of Origin (CoO) issued. A preferential CoO confirms that goods meet prescribed rules of origin, making them eligible for reduced or zero customs duties under the relevant agreement. The UAE CEPA and Australia ECTA have generated a large volume of such certificates since 2022, indicating robust tariff concession utilisation.

Early uptake is also visible under newer agreements. The EFTA Trade and Economic Partnership Agreement (TEPA), operational since October 2025, has generated 7,885 CoOs. The Oman CEPA, implemented in June 2026, has seen 783 CoOs issued. The government has also simplified origin certification procedures to ease access for smaller exporters, the factsheet noted.

What the Shift Signals

The growing use of preferential certificates and the expanding product range entering FTA markets suggest that India's trade agreements are moving beyond the announcement stage into active commercial use. This comes amid a broader government push to widen India's trade partnerships across major global markets. Notably, the transition is being supported by outreach initiatives that help exporters navigate preferential benefit claims and enter new markets, according to the factsheet.

With several agreements at different stages of implementation, the pace of CoO issuance and export diversification under newer FTAs will be closely watched as a measure of how quickly the full commercial potential of these deals is being realised.