India’s Exports Under Free Trade Pacts Grew Faster: Piyush Goyal
According to Union Minister of Commerce and Industry Piyush Goyal, exports under free trade agreements (FTAs) are currently increasing at a faster rate than imports, indicating better utilization of trade agreements.
A blog post examining trade figures from April to July of the present fiscal year highlighted that exports to FTA partner nations increased by 23.9 percent to $57.2 billion, surpassing the 13.9 percent rise seen in exports to non-FTA markets.
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As a result, the proportion of FTA partners in India's overall exports increased from 31.1 percent ($46.2 billion) to 32.9 percent ($57.2 billion). Concurrently, the trade gap with FTA partners decreased from $34.2 billion to $32.6 billion. Exports to Singapore almost doubled, adding around $4 billion to growth, while trade with Oman increased by $0.6 billion after the Comprehensive Economic Partnership Agreement took effect on June 1, 2026.
Goyal pointed out that exporters are gradually overcoming previous structural bottlenecks to leverage these pacts. "For years, a fair criticism of India’s free trade agreements was that we signed them and then did not use them to their full potential. Our exporters found the rules-of-origin paperwork tedious. Importers, on the other hand, used the agreements enthusiastically. So the deals looked one-sided. This time the pattern is different."
"Preferential access through FTAs provides excellent opportunities for our exporters to expand their global footprint, access new markets, and deepen their presence internationally. Our exporters are steadily leveraging these opportunities to drive greater exports," Goyal states.
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Total merchandise exports for the four-month span hit $173.8 billion, marking a 17 percent rise from the $148.5 billion noted in the corresponding period last year. With services exports totaling $145 billion, India's overall exports reached nearly $319 billion.
Non-FTA destinations also logged noticeable gains, led by African markets. Inbound demand from Tanzania increased by $2 billion, South Africa added $1.7 billion, and Kenya recorded a $1.1 billion increase. "African markets are young, growing, and increasingly integrated into global trade. They also have growing demand for exactly the kind of goods India makes well. From pharmaceuticals and engineering products to automobiles, food products, textiles, and technology, Indian companies have enormous opportunities across the continent."
"However, it is important to recognise that four months is a relatively short period, and export performance during this window may reflect some large, one-time shipments that may not be repeated in every quarter," the minister adds.
Agricultural exports increased by 4.5 percent to $18.18 billion over the timeframe. Basmati rice shipments increased by 25.4 percent to $1.05 billion, non-basmati milled rice amounted to $588 million, castor oil was $423 million, other food preparations hit $284 million, shrimp and prawn exports reached $226 million, and instant coffee surpassed $200 million.
Goyal emphasized that imports during the period increased to $292.3 billion, driven by electronic components at $21.6 billion, computer hardware and peripherals at $12 billion, and batteries and accumulators at $2.8 billion, indicating a continuous growth in domestic manufacturing and industrial input needs.
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“The part I find most encouraging is that exporters found these markets themselves, one buyer and one shipment at a time. Our job in government is to keep the paperwork light, keep the credit flowing, keep the ports quick, make the agreements usable, open more doors, and then get out of the way of people who understand their business,” Goyal says.
He added that April-July 2026 has been promising for Indian exporters. “It is a signal that we are moving in the right direction.”