Parliament Question: Impact of FTAs with European Union and UK on exports

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE RAJYA SABHA UNSTARRED QUESTION NO. 3868 ANSWERED ON 27/03/2026 IMPACT OF FTAS WITH EUROPEAN UNION AND UK ON EXPORTS 3868. SHRI R. GIRIRAJAN Will the Minister of COMMERCE AND INDUSTRY be pleased to state: (a) whether Government is expecting an increase in India’s exports due to the Free Trade Agreements (FTAs) with European Union (EU) and UK, if so, the details thereof; (b) the details of the total revenue generated (in INR) through exports of automobiles, electronic and IT products, textiles and apparel, leather and leather goods, spices and agro products from India to UK and EU countries in the last five financial years; and (c) the steps taken or to be taken by Government to protect the interests of the exporters to UK and EU countries? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) India and the European Union (EU) jointly announced the conclusion of the India– European Union Free Trade Agreement (India–EU FTA) on 27 January 2026 at the 16th India–EU Summit in New Delhi. Despite steady growth of trade between India and EU, there is a significant untapped potential considering the size of each other’s market and trade. India has secured unprecedented preferential market access for more than 99% of Indian exports by trade value to the EU. Of this 90.7% of India’s exports will be able to enter into the EU market at zero duty from the date of entry into force of the Agreement. This will give significant momentum to the steady growth of India’s exports to the EU. India has signed Comprehensive Economic and Trade Agreement (CETA) with UK on 24th July 2025, after successful conclusion of negotiations. The India-UK CETA provides duty-free access for more than 99% of India’s exports to the UK, covering nearly 100% of the trade value. This includes sectors such as textiles, leather, marine products, gems and jewellery, toys, engineering goods, electrical and electronic equipment, chemicals, and auto components. CETA is expected to boost trade volumes in the coming years, creating jobs, expanding exports, empowering artisans, women- led enterprises and MSMEs, and supporting a deeper, more resilient economic relationship between India and the UK. (b) The details of the total exports of automobiles, electronic and IT products, textiles and apparel, leather and leather goods, spices and agro products from India to UK and EU countries in the last five financial years are given below: 1Exports to UK in Rs. Crore Sectors 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Agro products 4979 5043 5486 7078 6986 Automobiles 14 23 20 34 20 Electronics & IT 4165 7352 11400 14969 18125 Leather/Footwear 2644 3750 4317 3762 4200 Spices 923 910 912 1192 1440 Textiles/ Apparel 11653 15156 16046 15544 17025 Exports to EU in Rs. Crore Sectors 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Agro products 21424 24639 29720 29856 35244 Automobiles 106 129 132 150 153 Electronics & IT 23042 34319 62691 65968 95137 Leather/Footwear 13998 17305 20856 19738 20109 Spices 3622 4733 5128 5937 9030 Textiles/ Apparel 41582 55825 58790 55447 61886 (c) India has secured unprecedented preferential market access for more than 99% of Indian exports by trade value to the EU. The India-UK CETA provides duty-free access for more than 99% of India’s exports to the UK, covering nearly 100% of the trade value. To protect the interests of the domestic industry, FTAs provide for maintaining sensitive, negative or exclusion lists of items on which limited or no tariff concessions are granted. In addition, in case of surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as safeguards on imports within the period as mutually agreed to by the parties under the FTAs. The FTAs include provisions on Technical Barriers to Trade and Sanitary and Phytosanitary measures to promote mutual understanding of each side’s standards, regulations, and measures to enhance transparency and address issues which may arise. Under Rapid Reaction Mechanism, both sides have agreed to establish a dedicated and expedited mechanism to address concerns arising from existing and future measures/regulations that create or threaten to create significant disruption or impediment to trade between the Parties. Non-violation Complaints (NVCs) provision in the Disputes Settlement Chapter provides a provision for finding a solution to new measures which may not expressly breach the terms of the Agreement but nullify or impair the benefits including market access concessions under the FTA. These provisions are expected to enhance export competitiveness while ensuring that the interests of domestic industry and exporters are adequately safeguarded. ***** 2