Sri Lanka
Sri LankaIndiaSri LankaIndiaMaldivesSri Lanka
Indian OceanPalk StraitSri Lanka📌 Why in News?
India’s FTA journey is moving from expanding its network of agreements to making fuller use of the market access. What is a Free Trade Agreement (FTA)? A Free Trade Agreement (FTA) is a pact between two or more countries where they agree to: Reduce or eliminate customs duties on goods; Liberalise trade in services; Provide investment protection; Ensure safeguards for intellectual property rights (IPR).
Syllabus & Relevance
Prelims: International Relations — institutions, terminology and factual features connected with the development.
Mains: GS-2 — contemporary application of the relevant syllabus theme.
Current–static link: Revise the underlying institution, policy or concept together with this development.
Why it matters for India
India’s FTA journey is moving from expanding its network of agreements to making fuller use of the market access.
Major Highlights of India’s Recent FTAs UAE and Australia illustrate the early progress under India’s recent trade agreements.
India-UAE CEPA (2022): India exported merchandise worth US$ 37,359.11 million to the UAE in FY 2025-26.
Static Foundation
A Free Trade Agreement (FTA) is a pact between two or more countries where they agree to: Reduce or eliminate customs duties on goods; Liberalise trade in services; Provide investment protection; Ensure safeguards for intellectual property rights (IPR).
Major Highlights of India’s Recent FTAs
In FY 2025-26, combined merchandise and services exports reached a record US$ 863.1 billion, including merchandise exports of US$ 441.8 billion.
UAE and Australia illustrate the early progress under India’s recent trade agreements.
India-UAE CEPA (2022): India exported merchandise worth US$ 37,359.11 million to the UAE in FY 2025-26.
Among India’s trade agreements, the UAE was India’s largest export destination.
Bilateral trade crossed US$ 100.06 billion in FY 2024-25, recording a 19.6% growth.
Data, Reports, Cases & Examples
In FY 2025-26, combined merchandise and services exports reached a record US$ 863.1 billion, including merchandise exports of US$ 441.8 billion.
India-UAE CEPA (2022): India exported merchandise worth US$ 37,359.11 million to the UAE in FY 2025-26.
Bilateral trade crossed US$ 100.06 billion in FY 2024-25, recording a 19.6% growth.
India and the UAE set a new target of doubling trade to US$ 200 billion by 2032.
India-Australia ECTA (2022): Total bilateral trade reached US$ 24.1 billion in FY 2024-25.
India’s exports to Australia have increased from US$ 4 billion in FY 2020-21 to US$ 7.28 billion in FY 2025-26, recording 80%+ growth.
Prelims Quick Facts
India’s FTA journey is moving from expanding its network of agreements to making fuller use of the market access.
What is a Free Trade Agreement (FTA)?
A Free Trade Agreement (FTA) is a pact between two or more countries where they agree to: Reduce or eliminate customs duties on goods; Liberalise trade in services; Provide investment protection; Ensure safeguards for intellectual property rights (IPR).
Major Highlights of India’s Recent FTAs
In FY 2025-26, combined merchandise and services exports reached a record US$ 863.1 billion, including merchandise exports of US$ 441.8 billion.
UAE and Australia illustrate the early progress under India’s recent trade agreements.
India-UAE CEPA (2022): India exported merchandise worth US$ 37,359.11 million to the UAE in FY 2025-26.
Among India’s trade agreements, the UAE was India’s largest export destination.
Mains-only layer✍️ Open Mains Perspective & Answer FrameworkClick to expand ↓
Mains Perspective
Background and key dimensions
- In FY 2025-26, combined merchandise and services exports reached a record US$ 863.1 billion, including merchandise exports of US$ 441.8 billion.
- UAE and Australia illustrate the early progress under India’s recent trade agreements.
- India-UAE CEPA (2022): India exported merchandise worth US$ 37,359.11 million to the UAE in FY 2025-26.
- Among India’s trade agreements, the UAE was India’s largest export destination.
- Bilateral trade crossed US$ 100.06 billion in FY 2024-25, recording a 19.6% growth.
- India and the UAE set a new target of doubling trade to US$ 200 billion by 2032.
- India-Australia ECTA (2022): Total bilateral trade reached US$ 24.1 billion in FY 2024-25.
- India’s exports to Australia have increased from US$ 4 billion in FY 2020-21 to US$ 7.28 billion in FY 2025-26, recording 80%+ growth.
- From 2026 onwards, all Indian exports are now eligible for zero-duty access to the Australian market.
- Facilitating Exporters’ Access to FTA Benefits: A trade agreement opens preferential market access, exporters generally need to provide proof of origin for their goods.
- A preferential Certificate of Origin (CoO) confirms that the goods meet the prescribed rules of origin.
- This allows qualifying goods to receive reduced or zero customs duties.
Analytical use
- Connect the development with its institutional, policy, economic, social, environmental or security implications only where supported above.
- In a Mains answer, separate the verified development from broader evaluation and use the named evidence precisely.
Way forward
- Base recommendations on the gaps and institutional responsibilities identified in the source-grounded points.
Answer Framework
Introduction
Begin with the immediate development and identify the central institution or policy issue.
Body
- Explain the relevant static concept.
- Present the principal source-backed facts.
- Analyse significance for India and the syllabus theme.
- Discuss supported challenges or implementation gaps.
- Use one named law, report, institution, date or example from the evidence box.
Conclusion
End with a balanced, institutionally feasible way forward without making claims beyond the available evidence.
Possible Mains Question
Examine the significance of “India’s Trade Agreements”. Discuss its key implications and the way forward.