Overview: The Government of India is stepping up efforts to help businesses use the benefits available under its Free Trade Agreements (FTAs). Following a call for nationwide outreach across all 780 districts, the Department of Commerce held a programme in Jaipur. The initiative focuses on tariff concessions, rules of origin and export readiness, particularly for MSMEs and first-time exporters.
India’s expanding network of trade agreements offers exporters opportunities to access overseas markets on preferential terms. However, businesses must understand the conditions attached to these benefits before claiming them. The Government’s outreach drive aims to bridge this information gap and help Indian enterprises turn negotiated market access into export opportunities.
Government Pushes Nationwide FTA Utilisation
On 3rd September 2026, Union Commerce and Industry Minister Piyush Goyal called for a nationwide effort to improve the use of FTAs. He urged government bodies, state governments and industry stakeholders to reach businesses across all 780 districts, including micro, small and medium enterprises (MSMEs), traders, startups and women entrepreneurs.
The Department of Commerce followed this call with a Leveraging FTAs outreach programme in Jaipur on 17th October. Exporters, government representatives, the Directorate General of Foreign Trade (DGFT) and industry bodies discussed market opportunities and the practical challenges of using preferential tariffs.
India’s agreements with partners such as the UAE, Australia, the United Kingdom and the European Free Trade Association (EFTA) countries offer opportunities for eligible Indian goods and services. The concessions available under each agreement depend on the product, destination market and applicable provisions.
What Exporters Need to Check Before Claiming FTA Benefits
Product eligibility and tariff concessions
Exporters should identify the correct product classification, including its Harmonised System (HS) code, and check the applicable tariff schedule in the destination country. An FTA does not automatically provide reduced or zero customs duty for every product.
Rules of origin
Goods must satisfy the applicable rules of origin to qualify for preferential treatment. Depending on the agreement, these may require a specified level of value addition, a change in tariff classification or particular manufacturing processes. Shipping goods from India alone does not establish their originating status.
Certificate of Origin and supporting documents
Where required, exporters must obtain the prescribed proof of origin and retain supporting records. Preferential Certificates of Origin are filed through the DGFT’s eCoO 2.0 platform. The relevant agreement determines the applicable origin criteria and certification procedure.
4. Quality and certification requirements
Preferential tariffs do not remove destination-market requirements. Product standards, testing, labelling, certification and sanitary or phytosanitary conditions may apply, particularly to food and agricultural products. Exporters should check these requirements before accepting an overseas order.
Opportunities for MSMEs and Emerging Exporters
The outreach drive is particularly relevant to smaller businesses that may lack dedicated export teams or experience with overseas markets. Information on tariff preferences, documentation and buyer connections can help them assess new destinations and prepare for international trade.
The Jaipur programme highlighted opportunities in gems and jewellery, including coloured gemstones, lab-grown diamond jewellery and traditional Kundan-Meenakari products. Textiles, handicrafts, engineering goods and eligible agricultural products also offer avenues for export diversification.
Businesses must assess demand, competition, logistics costs and compliance requirements alongside tariff concessions. Preferential access creates an opportunity; it does not guarantee orders or profitability.
Export Readiness and Compliance Support
Access to overseas markets is only one part of export readiness. Businesses must also address applicable registrations, GST requirements and export documentation before beginning cross-border transactions. Gaps in these areas can delay shipments or create avoidable compliance issues.
Frequently Asked Questions
A Free Trade Agreement is an arrangement between countries or trading partners that reduces or removes specified trade barriers. It may provide eligible exports with preferential customs duty rates in the destination market, subject to the agreement’s conditions.
No. Tariff concessions depend on the product, destination market and applicable agreement. Some products receive zero-duty access, while others qualify for reduced rates or remain excluded. Exporters should verify the relevant tariff schedule before pricing a shipment.
Rules of origin determine whether goods qualify as originating under a particular trade agreement. Depending on the agreement, the criteria may include value addition, a change in tariff classification or specified manufacturing processes.
A Certificate of Origin provides evidence of the origin of exported goods. Where preferential treatment is claimed, exporters must follow the applicable agreement’s requirements for obtaining proof of origin and supporting the claim.
An IEC issued by the DGFT is generally required for exports of goods from India, subject to applicable exemptions. For service exports, IEC requirements depend on the applicable Foreign Trade Policy provisions and whether the exporter seeks benefits under that policy.
Depending on the transaction, businesses may need to address IEC requirements, GST registration and invoicing, LUT filing where applicable, export documentation and product-specific licences or certifications. They should also verify the rules of origin and proof-of-origin requirements before claiming preferential tariffs.
SetIndiaBiz Support
Setindiabiz supports businesses with Import Export Code (IEC) requirements, GST registration and compliance, Letter of Undertaking (LUT) filing where applicable, and export documentation. Our professionals help businesses address these requirements as part of their export-readiness process, allowing business owners to focus on market development and buyer relationships.
Under Section 16 of the Integrated Goods and Services Tax (IGST) Act, 2017, exports qualify as zero-rated supplies, subject to the statutory framework. Eligible registered exporters can furnish an LUT under Rule 96A of the Central Goods and Services Tax (CGST) Rules, 2017 to make qualifying supplies without upfront payment of IGST, subject to the prescribed conditions.
Businesses should review these compliance requirements before entering export transactions and separately confirm the applicable tariff concessions and rules of origin under the relevant FTA.
