Trade Pact Power Play: Indian Exporters Tap FTAs, Preferential Certificates Hit Record High

Image Source: The Economic

Indian businessmen are increasingly dependent on Free Trade Agreements (FTAs), as the number of preferential certificates of origin issued witnessed a sharp increase. The trend indicates increased dependence on trade pacts to get competitive and access the world market more.

Key Highlights

Record Number of Certificates Issued: The FTAs issued preferential certificates of origin increased to 7,20,996 in 2024-25 from 6,84,724 in 2023-24. This is a clear increase in the use of trade agreements by Indian exporters.
Robust Start to Present Fiscal: 1,32,116 certificates were awarded in April-May 2025 alone, against 1,20,598 in the corresponding period previous year, reflecting continuing momentum.
Wider FTA Network:
India currently operates more than 13 operational FTAs with nations such as Japan, Singapore, South Korea, UAE, and Australia, and is in the process of negotiating new pacts with the US, UK, EU, and other territories.
Competitiveness Boost: Commerce Secretary Sunil Barthwal emphasized that increased certificate issuance directly reflects exporters availing themselves of preferential duties, thereby enhancing their global competitiveness.

Government Assistance and Future Prospects:

The government is holding an Export Promotion Mission to help exporters address technical rules and non-tariff barriers, including recently introduced EU regulations like the Digital Product Passport, which will be effective from 2026.
India's exports of merchandise would grow 12% in 2025-26, perhaps to $525-535 billion, fueled by mounting trade agreements and improved market access.

Sectoral Impact: These key industries like electronics, engineering, pharmaceuticals, and textiles will benefit from more utilization of FTA, and issues like new EU compliance are being addressed by means of policy support. If a person is making use of these certificates, that means they are making use of the preferential duty under the FTA," Commerce Secretary Sunil Barthwal stated.

Source: The Economic Times, Rediff, India Briefing, Matexil News Updates.