India’s ongoing free trade agreement negotiations could significantly widen market access for domestic exporters, potentially bringing nearly three-fourths of the country’s annual merchandise exports under preferential trade arrangements.
Nearly 75 per cent of India’s annual merchandise exports could benefit from preferential market access if New Delhi successfully concludes all the free trade agreements (FTAs) currently under negotiation, according to data from the Department of Commerce.
The potential expansion would represent a significant increase from the existing coverage of 27.4 per cent of India’s merchandise exports, highlighting the government’s efforts to strengthen international trade ties, diversify export destinations and improve the competitiveness of Indian businesses in global markets.
India has concluded eight trade agreements over the past six years and is currently negotiating more than 10 additional agreements with various trading partners. These negotiations form part of India’s broader strategy to secure better access to international markets, reduce trade barriers and create new opportunities for domestic manufacturers, exporters and service providers.
During the current financial year, India has implemented three free trade agreements with Oman, the United Kingdom (UK) and New Zealand, further expanding its network of preferential trade partnerships.
According to the Commerce Department data, India’s existing trade agreements cover merchandise exports valued at approximately $120.9 billion, accounting for 27.4 per cent of the country’s total merchandise exports of $441.5 billion in FY2025-26.
However, if all the trade agreements currently under negotiation are successfully concluded, the share of India’s merchandise exports covered by preferential trade arrangements could rise to 74.5 per cent, equivalent to approximately $329 billion.
This projected expansion would substantially enhance the reach of Indian exporters across major international markets, potentially improving their ability to compete through reduced tariffs and more favourable trade conditions.
For India’s manufacturing and export sectors, a wider network of FTAs could provide greater opportunities to integrate into global value chains, attract investments, strengthen supply-chain linkages and increase shipments across sectors such as engineering goods, textiles, pharmaceuticals, chemicals, automobiles, electronics and agricultural products.
The expanding FTA network is also expected to support India’s efforts to reduce excessive dependence on a limited number of export destinations while creating stronger commercial relationships with emerging and established economies.
With more than 10 trade agreements in the pipeline, the successful conclusion and effective implementation of these negotiations will be crucial in translating preferential market access into higher export volumes, greater trade competitiveness and sustained growth in India’s merchandise exports.
The potential increase from 27.4 per cent to 74.5 per cent of export coverage underscores the growing importance of trade agreements in India’s strategy to strengthen its position in global commerce.