FTA Surge Propels Goods Exports Up 25%; India's Trade Penetration Accelerates

FTA Surge Propels Goods Exports Up 25%; India's Trade Penetration Accelerates​

India's exports to Free Trade Agreement (FTA) partner nations saw a significant acceleration in the first quarter of FY27, driving goods export growth at 25 percent. This strong performance highlights the effective utilization and growing importance of domestic trade agreements for Indian exporters.

The Commerce Ministry reported that merchandise exports directed towards FTA partners rose to $43.14 billion during April-June of 2026-27. This marks a substantial increase from $34.65 billion recorded in the corresponding period one year prior.

Global Market Penetration through Free Trade Agreements​

This concentrated growth is outpacing the overall trajectory of India's merchandise exports, which grew by 16 percent during the same quarter. Overall goods exports climbed to $129.32 billion, up from $111.57 billion in the period before.

The importance of these trade blocs is reflected in the changing composition of Indian exports. The share held by FTA partner countries increased to 33.4 percent in April-June 2026-27. This represents a rise from 31.1 percent in the previous fiscal year (2025-26).

Furthermore, trade agreement utilization is rapidly expanding. The number of Certificates of Origin issued to exporters more than doubled over five years. These certificates rose from 3.6 lakh in 2021-22 to exceed 7.8 lakh in the first quarter of 2026-27.

Historical Trajectory of Indian Exports​

India achieved a historic high for total exports during the previous fiscal year (2025-26). Total merchandise and services exports reached $863.1 billion, significantly up from $676.53 billion recorded in 2021-22.

The sustained rise in overall exports is increasingly supported by strong growth in service sectors. Services exports expanded from $254.53 billion in 2021-22 to $421.29 billion in 2025-26.

Merchandise sector performance has also been robust, growing from $422 billion in 2021-22 to $441.73 billion in the fiscal year 2025-26.

PLI Schemes Drive Industrial Transformation​

The government highlighted industrial promotion measures as a key contributor to this export momentum. Production Linked Incentive (PLI) schemes, covering 14 critical sectors, are generating massive economic activity.

As of March 31, 2026, the impact of these policies is evident across investment and production metrics. The PLI schemes had approved 892 applications, resulting in a committed investment exceeding Rs 2.40 lakh crore.

Production and sales have also seen considerable scaling. These incentives generated over Rs 22.66 lakh crore in production or sales value. Exports related to these schemes reached over Rs 15.20 lakh crore, while more than 14.15 lakh persons were employed.