Parliament Question: Merchandise and Service Exports under FTA

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE LOK SABHA UNSTARRED QUESTION NO. 2612 ANSWERED ON 04/08/2026 MERCHANDISE AND SERVICE EXPORTS UNDER FTA 2612. SMT. SANJNA JATAV: Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य और उधोग मंत्री) be pleased to state: (a) the details of the total merchandise and services exports made by India with its Free Trade Agreement (FTA) partner countries during the last financial year and the sector-wise and product-wise contribution of exports related to Rajasthan, particularly Bharatpur Lok Sabha Constituency in Rajasthan; (b) the utilization rate of concessional customs duty benefits available under the recently implemented bilateral trade agreements, and the status of utilization of these benefits by the exporters of Bharatpur Lok Sabha Constituency; and (c) the strategic monitoring mechanisms and supportive measures adopted by the Government for the effective monitoring and promotion of export growth in labor- intensive domestic manufacturing sectors, especially Micro, Small and Medium Enterprises (MSMEs) located in Bharatpur Lok Sabha Constituency? ANSWER वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) In FY 2025–26, India achieved its highest-ever exports, reaching US$ 863.1 billion. Merchandise exports stood at US$ 441.8 billion, while services exports expanded to US$ 421.3 billion—underscoring the combined strength of both sectors in driving overall export growth. Destination-wise data is available for merchandise exports, and India’s merchandise exports under Free Trade Agreements (FTAs) during FY 2025–26 are presented in Table 1. District-level data is also available for merchandise exports, with Table 2 highlighting the principal commodity-wise merchandise exports from Bharatpur district in Rajasthan for 2025–26.Table 1: India’s Merchandise Exports to FTA partners in FY 2025-26 Merchandise Exports in FY Free Trade Agreements Date of Implementations 2025-26 (US$ Million) India-Australia Economic Cooperation 29th December 2022 7284.17 and Trade Agreement (ECTA) 29th July 2006 India–Bhutan Agreement on Trade, and renewed with effect 1252.86 Commerce and Transit from 29 July 2017 India–Japan Comprehensive Economic 1st August, 2011 6039.5 Partnership Agreement (CEPA) India–Republic of Korea Comprehensive Economic Partnership Agreement 1st January, 2010 6012.03 (CEPA) India–Malaysia Comprehensive Economic Cooperation Agreement 1st July, 2011 6825.55 (CECA) India–Mauritius Comprehensive Economic Cooperation and Partnership 1st April, 2021 473.64 Agreement (CECPA) India–Nepal Treaty of Trade 27-10-2009 7447.11 India–New Zealand Free Trade Signed, yet to be effective 566.51 Agreement (FTA) India–Oman Comprehensive Economic 01st June 2026 4021.48 Partnership Agreement (CEPA) India–Singapore Comprehensive Economic Cooperation Agreement 1st August, 2005 11863.66 (CECA) India–Sri Lanka Free Trade Agreement 1st March, 2000 5516.83 (ISFTA) India–Thailand Free Trade Agreement 1st September, 2004 5058.6 (Early Harvest Scheme) India–United Arab Emirates Comprehensive Economic Partnership 1st May 2022 37359.11 Agreement (CEPA) India-UK Comprehensive Economic and 15th July 2026 13444.19 Trade Agreement (CETA) Goods ASEAN–India Trade in Goods, Services • 1st January 2010 in 38416.33 and Investment Agreement (AIFTA) respect of India and Malaysia,Singapore, Thailand. • 1st June 2010 in respect of India and Vietnam. • 1st September 2010 in respect of India and Myanmar. • 1st October 2010 in respect of India and Indonesia. • 1st November 2010 in respect of India and Brunei. • 24th January 2011 in respect of India and Laos. • 1st June 2011 in respect of India and the Philippines. • 1st August, 2011 in respect of India and Cambodia. Services and Investment 1st July, 2015 1st January 2006 South Asian Free Trade Area (SAFTA) (Tariff concessions 25774.68 Agreement implemented from 1st July, 2006) India–European Free Trade Association Trade and Economic Partnership 01st October 2025 1755.07 Agreement (TEPA) Source: DGCI&S, TIA Portal Table 2. Merchandise exports by Bharatpur district of Rajasthan in 2025-26 S No Principal Commodity Description Exports (US$ thousand) 1 Dairy Products 11,220.80 2 Other Cereals 594.23 3 Cotton Yarn 127.20 4 Rice (Other Than Basmoti) 87.84 5 Bulk Drugs, Drug Intermediates 78.65 6 Organic Chemicals 30.55 7 Fresh Vegetables 21.29 8 Granit, Natural Stone And Product 16.70 9 Pumps Of All Types 14.8710 Indl. Machinery For Dairy Etc 13.31 11 Agro Chemicals 9.39 12 Paint, Varnish And Allied Products 5.99 13 Spices 4.95 14 Electric Machinery And Equipments 4.46 15 Handcrafts (Excl.Handmade Crpts) 4.13 16 Drug Formulations, Biologicals 4.03 17 Cosmetics And Toiletries 2.91 18 Ic Engines And Parts 2.74 19 Manmade Yarn, Fabrics, Madeups 2.18 20 Misc Processed Items 1.58 21 Plywood And Allied Products 1.09 22 Electronics Components 1.08 23 Medical And Scientific Instruments 0.98 24 Surgicals 0.66 25 Other Construction Machinery 0.47 26 Products Of Iron And Steel 0.27 27 Ceramics And Allied Products 0.20 28 Paper, Paper Board And Product 0.04 Source: DGCI&S (b) The Government monitors utilisation of preferential tariff benefits under newly operationalised trade agreements (signed post 2021) through Certificates of Origin and partner-country trade data. • India-UAE Comprehensive Economic Partnership Agreement (CEPA): Since its entry into force on 1st May 2022, 4.45 lakh Certificates of Origin have been issued, reflecting robust utilisation of tariff concessions by Indian exporters. Further, the number of tariff lines at the HS 8-digit level exported to the UAE increased from 7,546 in FY 2021-22 (pre-CEPA) to 8,053 in FY 2025-26, with exports across these tariff lines valued at US$ 37.3 billion. This represents an increase of 507 tariff lines (6.7%), indicating greater export diversification and deeper market penetration in the UAE market following the implementation of CEPA. • India-Australia Economic Cooperation and Trade Agreement (ECTA): Since its entry into force in December 2022, 2.73 lakh Certificates of Origin have been issued. Prior to ECTA, only 1,482 Certificate of Origin were issued in FY 2020- 21. Following implementation of the Agreement, Certificate of Origin issuance increased significantly, with an average of approximately 45,527 Certificate of Origin issued annually. In FY 2021-22, 5396 tariff lines at HS 8 level and after FTA in FY 2025-26, 5668 tariff lines at HS 8 level valuing US$ 7.2 Bn. This represents an increase of 272 tariff lines, indicating greater export diversification and expanded market access following the implementation of ECTA. • India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA): The CECPA entered into force on 1 April 2021. The Agreement provides preferential market access for 310 Indian product lines in Mauritius and covers goods, services, Rules of Origin, customs procedures and economic cooperation. Indian exporters have availed preferential tariff benefitsthrough the issuance of 1,956 Certificates of Origin under the Agreement. Further, the number of tariff lines at the HS 8-digit level exported to Mauritius increased from 3,593 in FY 2021-22 (pre-CECPA) to 4,345 in FY 2025-26, with exports across these tariff lines valued at approximately US$ 473 million. This represents an increase of 752 tariff lines (20.9%), indicating greater export diversification and expanded market access following the implementation of CECPA. • India–Oman Comprehensive Economic Partnership Agreement (CEPA): CEPA grants duty-free access to 99.38% of India’s exports to Oman by value, covering 98.08% of Oman’s tariff lines, making it one of India’s most comprehensive market access outcomes in the Gulf region. Since its entry into force on 1 June 2026, 783 Certificates of Origin have been issued. Further, the number of tariff lines at the HS 8-digit level exported to Oman increased from 2,879 in May 2026 to 3,371 in June 2026. Exports across these tariff lines stood at US$ 622.8 million in June 2026, compared to US$ 402.7 million in May 2026 (month-on-month growth of 54.7%) and US$ 215.1 million in June 2025 (year-on-year growth of 189.6%), indicating enhanced market access and export diversification following the implementation of the Agreement. • India EFTA-TEPA: Under TEPA, EFTA has offered 92.2% of tariff lines encompassing 99.6% of India’s exports. Includes 100% of non-agricultural products and tariff concessions on Processed Agricultural Products (PAP). Since its entry into force in October 2025, 7885 Certificates of Origin have been issued reflecting impressive utilisation of tariff concessions by Indian exporters (c) The labour-intensive sectors have remained a key priority in India's recent FTA negotiations. Agreements concluded with the UAE, Australia, the United Kingdom, Oman, New Zealand and EFTA have secured improved market access while adopting a calibrated approach to safeguard sensitive domestic sectors. Collectively, these agreements provide preferential access to a substantial share of partner-country tariff lines, for instance, 99% of Indian exports to the UK, 97% of EU tariff lines covering about 99.5% of bilateral trade value, 100% duty-free access for Indian exports to New Zealand, 98% of Oman's tariff lines, and 99.6% of tariff lines under the India–EFTA TEPA. These agreements provide significant export opportunities for labour-intensive sectors such as textiles & apparel, leather & footwear, gems & jewellery, marine products, carpets, handicrafts and agricultural products, while preserving adequate policy space for sensitive domestic sectors through calibrated tariff liberalisation and transition arrangements. This balanced approach seeks to promote employment- intensive exports, strengthen domestic manufacturing competitiveness and deepen India's integration into global value chains. The Government has instituted a comprehensive monitoring framework to track export performance across all sectors, including export growth in labor-intensive domestic manufacturing sectors. This framework is driven by a whole-of-Government approach, ensuring active participation from every stakeholder - the Department of Commerce, Directorate General of Foreign Trade (DGFT), Export Promotion Councils (EPCs), Commodity Boards, line Ministries and Departments, State Governments (down to the district level), and Indian Missions abroad. By mobilizing this broad institutional network, the Government is reinforcing accountability, coordination, and responsiveness in export promotion—creating a unified mechanism to sustain and accelerate India’s export growth.The Department of Commerce has also significantly strengthened trade facilitation and trade intelligence platforms such as Trade e-Connect and the Trade Intelligence and Analytics (TIA) Portal. Trade e-Connect serves as a comprehensive exporter facilitation platform, integrating market intelligence, tariff information, non-tariff barriers, Rules of Origin guidance, buyer-seller information, trade events, country and product guides, and FTA-related advisory services to help exporters identify opportunities and effectively utilise preferential market access under India's FTAs. The platform also facilitates engagement between exporters, Indian Missions abroad and relevant government agencies, thereby reducing information asymmetries and improving access to international markets. The TIA Portal complements these efforts by providing extensive trade analytics, commodity-level data, partner-country information and interactive dashboards to support data-driven policymaking and real-time monitoring of export performance. *****