India’s FY 2025‑26 Exports Hit $863.1 bn – FTAs Boost Trade with UAE, UK, Australia
India’s FY 2025‑26 exports reached a record US$ 863.1 billion, driven by expanded market access under multiple FTAs, especially with the UAE, UK and Australia. The surge underscores the importance of preferential trade agreements, digital facilitation tools, and the focus on labour‑intensive sectors for employment generation, a key theme for UPSC economics and governance studies.
India’s total exports in FY 2025‑26 reached a record **US$ 863.1 billion**, with merchandise exports of **US$ 441.8 billion** and services exports of **US$ 421.3 billion**. The surge was driven by deeper market access under multiple FTAs and the active use of trade‑facilitation platforms. Key Developments Exports to the United Arab Emirates under the CEPA rose to **US$ 37.3 billion**, with 4.45 lakh Certificates of Origin issued. Australia’s ECTA generated **US$ 7.2 billion** in exports, supported by 2.73 lakh Certificates of Origin and an increase of 272 HS‑8 tariff lines. New Zealand, Mauritius, Oman and the EU‑EFTA TEPA also showed strong growth, with duty‑free access to over 98 % of tariff lines. The Ministry of Commerce & Industry issued over **7.5 lakh** total Certificates of Origin across all FTAs in FY 2025‑26. Important Facts Top merchandise export partners: UAE (**US$ 37.3 bn**), UK (**US$ 13.4 bn**), Australia (**US$ 7.3 bn**). FTAs cover 99 % of Indian exports to the UK, 98 % to Oman, and 99.6 % to the EU‑EFTA bloc. Labour‑intensive sectors such as textiles, apparel, leather, gems, jewellery, marine products and handicrafts benefit from preferential market access. Digital platforms: <span class="key-term" data-definition="Trade e-Connect — an online portal that provides exporters with market intelligence, tariff info and FTA guidance, enhancing trade facilitation (GS
Quick Reference
Key Insight
FTAs fuel India’s record $863 bn export surge – a game‑changer for the economy
Key Facts
- कुल निर्यात FY 2025‑26: US$ 863.1 bn (वस्तु US$ 441.8 bn, सेवाएँ US$ 421.3 bn)।
- शीर्ष वस्तु निर्यात साझेदार: UAE – US$ 37.3 bn।
- UK निर्यात: US$ 13.4 bn; Australia निर्यात: US$ 7.3 bn।
- Certificates of Origin सभी FTAs में जारी: 7.5 lakh से अधिक।
- FTAs UK को निर्यात का 99 % कवर करते हैं, Oman को 98 % और EU‑EFTA ब्लॉक को 99.6 % कवर करते हैं।
- Trade‑facilitation पोर्टल अपग्रेड किए गए: Trade e‑Connect और TIA Portal।
- श्रम‑गहन क्षेत्रों (वस्त्र, चमड़ा, रत्न, हस्तशिल्प) को प्रीफ़रेंशियल बाजार पहुंच मिली।
Background
India’s external sector is shaped by trade policy and FTAs that lower tariffs and simplify customs. By expanding market access, FTAs help diversify export baskets, create jobs in labour‑intensive industries and boost foreign exchange earnings, all key themes in GS‑3 (Economy).
UPSC Syllabus
- GS2 — Government policies and interventions for development
- GS2 — Bilateral, regional and global groupings involving India
- GS2 — India and its neighborhood relations
- GS2 — Effect of policies of developed and developing countries on India
- Prelims_GS — International Current Affairs
Mains Angle
GS‑3: Discuss how recent FTAs have transformed India’s export performance and what policy steps are needed to sustain the growth trajectory.