DGFT urges industry to tap FTAs for export growth at CII conclave
Synopsis
Key Takeaways
The Director General of Foreign Trade (DGFT), Lav Agarwal, on Tuesday, 29 September called on Indian manufacturers to actively leverage the country's new free trade agreements (FTAs) and partner with the government to translate market access into measurable export growth. Speaking at the Confederation of Indian Industry (CII) national manufacturing conclave in New Delhi, Agarwal stressed that the real challenge is converting treaty text into on-the-ground trade activity.
Key Developments at the CII Conclave
Addressing industry leaders, Agarwal said: 'Through the new trade agreements, India has opened up markets across the globe and created opportunities that can make Indian industry more competitive. The challenge now is to translate these FTAs into action on the ground.' He urged manufacturers to factor trade into their expansion plans and seek deeper integration into global value chains.
His remarks come against the backdrop of India having operationalised FTAs with the United Kingdom and Oman during the current financial year, with a third agreement — with New Zealand — scheduled for implementation next month.
India-UK FTA: A Gap in Industry Engagement
Agarwal pointed to a telling contrast: UK government and industry representatives held multiple meetings with the DGFT to understand the market access provisions of the India-UK FTA, while comparatively fewer Indian industry representatives sought similar discussions. 'We are here to work with all of you. We want to create a framework so that whatever market access an agreement offers does not only remain on paper,' he said.
This gap in proactive engagement, he argued, risks leaving significant export opportunity unrealised — a concern that is particularly acute given the scale of access the agreement provides to one of India's largest trading partners.
Export Promotion Mission and District-Level Push
Agarwal urged industry associations to carry the 11 components of the government's Export Promotion Mission — approved by the Union Cabinet last November — to the grassroots level. The mission covers export finance, market intelligence, logistics efficiency, inland export support, and compliance with international trade agreements.
He also called on associations to mentor prospective exporters, including micro, small and medium enterprises (MSMEs) and start-ups, and to help convert more than 500 district export action plans into actual exports. Agarwal suggested combining the Export Promotion Mission with the government's Districts as Export Hubs initiative — which aims to turn every Indian district into a centre for global trade — to build a more effective export ecosystem.
The Export Concentration Problem
Agarwal highlighted a structural imbalance in India's export geography: 10 states currently account for around 85% of the country's total exports, while 15 states account for approximately 95%. This concentration, he argued, underscores the untapped potential for significantly wider participation across India's districts and states.
'Government policy alone cannot lead to the required results. What we need is a true partnership, and a true measure of success would be how those initiatives are adopted by the industry at large,' he said, noting that DGFT has funds available under the Export Promotion Mission to support this effort.
What Comes Next
With the India-New Zealand FTA set to be implemented next month, industry bodies will face an immediate test of whether they can mobilise faster than they did for the UK agreement. The DGFT's call for an end-to-end framework — covering mentoring, hand-holding, and market intelligence — signals that the government is looking to industry associations as the primary delivery channel for export growth at scale.