India’s expanding network of free trade agreements (FTAs) is opening access to a vast global market, with the country’s chief FTA negotiator saying partner economies now represent an import market worth around $12 trillion.
Speaking at the 3rd CII Manufacturing Conclave, Darpan Jain, Additional Secretary in the Department of Commerce and India’s chief FTA negotiator, said FTAs have become an essential part of India’s manufacturing and export strategy. The agreements are aimed at providing exporters with greater market access, investment linkages and regulatory predictability.
Jain said India’s trade agreements have undergone a significant transformation in recent years. Earlier FTAs were generally narrower in scope and focused largely on neighbouring and developing economies. Since 2018, however, India has increasingly pursued comprehensive agreements covering goods, services, digital trade, investment, sustainability, labour and environmental standards.
The scale of India’s potential market access has expanded sharply. Before 2021, India’s FTA partners represented a combined GDP of about $10 trillion and an import market of roughly $5 trillion. After concluding eight FTAs over the past five years, India’s partner economies now account for more than $56 trillion in GDP and a $12 trillion import market, covering more than two-thirds of global trade.
The expanded trade network could provide significant opportunities for India’s labour-intensive industries, including textiles, apparel, leather, marine products and agriculture, which continue to face relatively high tariffs in several developed markets. Jain noted that some developed economies impose duties of between 10% and 26% on these sectors.
The government is increasingly focusing not only on signing FTAs but also on ensuring that Indian businesses make greater use of the preferential market access they provide. Recent government initiatives include export promotion programmes, logistics reforms, district-level export development and measures to address non-tariff barriers.
Industry estimates also highlight the scale of the opportunity. An ASSOCHAM study covering nine recent FTA partners found that these markets import more than $13 trillion of goods annually, while India’s share of that demand remains below 2%. The study estimates that India’s merchandise exports to these partners could rise from $233 billion in 2025 to $511 billion by 2030 and around $1 trillion by 2035.
India’s export performance is already showing the importance of its FTA network. The country recorded its highest-ever combined exports of $863.1 billion in FY2025-26, with the government highlighting FTAs as an important tool for export diversification and expanded market access.
However, converting the potential market into actual exports will depend on how effectively Indian companies utilise the agreements. Businesses will need to meet rules of origin, international quality standards and other regulatory requirements while improving competitiveness, logistics efficiency and supply-chain integration.
The growing FTA network therefore represents both an opportunity and a challenge for Indian industry. With access to markets worth trillions of dollars, the government is now seeking to move beyond signing trade agreements and ensure that manufacturers, MSMEs and exporters translate preferential access into higher shipments, investment, jobs and stronger integration with global value chains.