How Will FTAs with the EU and US Boost Exports?

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How Will FTAs with the EU and US Boost Exports?

Synopsis

The recent 6.15% growth in India's exports signals a strong recovery, with FTAs with the EU and US poised to enhance market access for key sectors. This revitalization underscores India's evolving trade landscape, promising significant opportunities for exporters across multiple industries.

Key Takeaways

Exports grew by 6.15% in 2025-26, indicating strong industrial competitiveness.
FTAs with the EU and US are set to enhance market access for Indian exporters.
Key sectors like engineering and pharmaceuticals are expected to benefit.
Imports rose by 6.54% to $823.41 billion.
The trade deficit remains manageable at $10.45 billion .

New Delhi, Feb 16 (NationPress) The 6.15 percent increase in total exports from April to January 2025-26 demonstrates the robustness and competitiveness of Indian industry, according to the Federation of Indian Export Organisations (FIEO) on Saturday.

Overall exports during this timeframe reached $720.76 billion, compared to $679.02 billion during the same period last year.

Merchandise exports amounted to $366.63 billion, reflecting a growth of 2.20 percent from $358.75 billion recorded in April-January 2024–25.

Remarkably, exports in January 2026 surged to $80.45 billion, up from $71.09 billion in January of the previous year, highlighting a robust recovery in external demand and enhanced global trade sentiment.

S.C. Ralhan, President of FIEO, emphasized that the successful finalization of Free Trade Agreements (FTAs) with both the European Union and the United States represents a pivotal change in India's trade architecture.

“Given that the United States remains India’s primary export market while Europe is a significant high-value trading partner, these agreements are set to facilitate better market access, improved tariff competitiveness, and increased regulatory certainty for Indian exporters,” he stated.

With timely execution and proactive industry readiness, these FTAs are expected to substantially boost India’s export growth trajectory in the forthcoming years.

Ralhan also pointed out that vital sectors such as engineering goods, pharmaceuticals, textiles and garments, leather, gems and jewellery, agriculture, and marine products are likely to gain significant advantages from these trade agreements.

The consistent performance of sectors including engineering goods, electronics, pharmaceuticals, textiles, gems and jewellery, and agriculture during this fiscal year illustrates the diversification of India’s export portfolio and the country’s deeper integration into global value chains.

On the import side, total imports from April to January 2025-26 rose by 6.54 percent to $823.41 billion, compared to $772.85 billion during the same period last year.

Merchandise imports increased by 7.21 percent to $649.86 billion from $606.13 billion in April-January 2024-25.

Even though the trade deficit in January reached $10.45 billion, the overall trend remains manageable considering sustained export growth and strengthening economic fundamentals.

Key export contributors during April-January 2025-26 included engineering goods, petroleum products, electronic goods, drugs and pharmaceuticals, gems and jewellery, organic and inorganic chemicals, ready-made garments, cotton yarn and fabrics, handloom products, rice, and marine products.

India’s main export destinations continued to include the United States, United Arab Emirates, China, Netherlands, United Kingdom, Germany, Singapore, Bangladesh, Saudi Arabia, and Italy, while major import sources comprised China, United Arab Emirates, Russia, United States, Saudi Arabia, Iraq, Switzerland, Hong Kong, Singapore, and Japan.

Point of View

The recent growth in India's exports and the successful FTAs with major economies reflect a strategic shift in trade policy that can enhance India's global competitiveness. This development is essential for fostering economic resilience and expanding market opportunities for various sectors.
NationPress
9 May 2026

Frequently Asked Questions

What is the significance of FTAs for India?
FTAs with the EU and US are crucial as they provide improved market access, better tariff terms, and enhanced regulatory predictability for Indian exporters, boosting overall export growth.
Which sectors are expected to benefit from the FTAs?
Key sectors such as engineering goods, pharmaceuticals, textiles, leather, gems and jewellery, agriculture, and marine products are anticipated to gain significantly from these agreements.
How much did India's exports grow in 2025-26?
India's overall exports grew by 6.15% during April-January 2025-26, reaching $720.76 billion.
Nation Press
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