India's export strategy has undergone a major shift over the past two decades. From its early focus on regional trade agreements in Asia, India has progressively moved towards targeted bilateral and comprehensive trade agreements designed to secure market access for Indian goods and diversify export destinations.
The journey began with the India-Sri Lanka FTA in 2000, followed by agreements with Singapore, SAFTA, ASEAN, South Korea, Japan and Malaysia. The strategy entered a new phase after 2021 with agreements including the India-Mauritius CECPA, UAE CEPA and Australia ECTA, followed by the EFTA agreement and more recent trade agreements with the UK and Oman. India has also advanced negotiations with the European Union and New Zealand.
The scale of India's export expansion during this period is significant. Total exports of goods and services increased from $468 billion in FY2014-15 to a record $863.1 billion in FY2025-26, an increase of about 84%, with a CAGR of 5.7%. Merchandise exports increased from around $310 billion to $441.8 billion, while services exports rose from approximately $158 billion to $421.3 billion.
The newer FTAs are also beginning to show measurable trade effects. Under the India-Australia ECTA, for example, India's exports to Australia increased from about $4 billion in FY2020-21 to $8.5 billion in FY2024-25. The UAE has also become one of India's most important export markets, with merchandise exports reaching around $37.4 billion in FY2025-26.
The latest data indicates that FTA markets continue to gain importance. During the first quarter of FY2026-27, India's exports to several FTA partners recorded strong growth, with shipments to Singapore and Sri Lanka more than doubling, according to Commerce Ministry data.
But the numbers also show why signing an FTA is only the beginning. India's merchandise exports grew only 0.93% in FY2025-26, to $441.78 billion, while services exports expanded much faster. The next challenge is therefore to convert preferential tariff access into higher utilisation by Indian manufacturers and exporters, particularly in labour-intensive and manufacturing sectors.
India's FTA strategy is now entering a different phase: from negotiating market access to measuring how effectively Indian exporters use it. With agreements covering major markets and further negotiations underway, the coming years will determine whether this expanding trade network can translate into a sustained rise in India's merchandise exports and deeper integration with global supply chains.
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