Overview: India’s growing network of trade agreements could open new markets for manufacturers, service providers and MSMEs. At the 31st CII Partnership Summit, Commerce Minister Piyush Goyal said nine free trade or preferential trade agreements cover 38 countries with a combined GDP of about $60 trillion. Ongoing trade engagements could take this potential market reach to around $85 trillion, against estimated global GDP of $115 trillion. These figures represent the economic size of potential partner markets, not guaranteed export demand.
For Indian businesses, the challenge is to turn these trade agreements into actual export orders. This requires more than identifying an overseas buyer. Exporters must understand product eligibility, applicable tariffs and documentation requirements before entering a new market.
India’s FTAs: Current Status and New Trade Opportunities
Commerce Minister Piyush Goyal has highlighted India’s growing trade network and its ability to attract global investment. Speaking at the 31st CII Partnership Summit in Visakhapatnam on 12th November, 2026, he said India had finalised nine FTAs or PTAs over the last four-and-a-half years, covering 38 countries with a combined GDP of around $60 trillion. Ongoing trade engagements could take the potential market reach to $85 trillion, roughly three-fourths of the estimated global GDP of $115 trillion.
Several agreements are already in force. These include trade arrangements with the UAE, Australia, Mauritius, EFTA countries, the UK and Oman. The India-New Zealand FTA also entered into force on 20th October, 2026.
Negotiations for the India-EU FTA concluded on 27th January, 2026. However, the agreement is yet to enter into force and remains subject to legal review, signature and the required approval procedures. India and Canada are also negotiating a Comprehensive Economic Partnership Agreement (CEPA), with the sixth round in New Delhi from 11th to 20th November, 2026.
The India-EU agreement could be particularly relevant for labour-intensive industries. Its proposed tariff concessions cover sectors such as textiles, leather, footwear, marine products, gems and jewellery, sports goods and toys. These benefits will become available only after the agreement enters into force and subject to its terms.
India Attracting Foreign Investors
Goyal invited global businesses to establish manufacturing plants, research and development centres, global capability centres and design centres in India. He highlighted open markets, domestic capabilities and a predictable business environment as factors supporting investment.
Foreign companies planning to establish operations in India can consider an Indian subsidiary or joint venture, subject to sectoral caps, applicable entry routes and FDI conditions. Incorporation of an Indian company generally takes place through the Ministry of Corporate Affairs’ SPICe+ process.
Foreign companies may also establish a branch, liaison or project office under the applicable FEMA and RBI provisions.
Benefits for Indian Businesses?
The expanding trade network could benefit different categories of Indian businesses:
- Exporters: Preferential tariffs could make eligible Indian products more competitive in overseas markets.
- MSMEs and manufacturers: Businesses in textiles, leather, footwear, engineering goods, food processing and other eligible sectors could explore new buyers in partner countries.
- Service providers: Some trade agreements provide improved access for cross-border services and professional mobility, subject to specific conditions.
However, lower tariffs do not apply to every product automatically. Exporters must meet the relevant rules of origin and comply with product standards, labelling and customs requirements in the destination country.
What Should Exporters Check Before Claiming FTA Benefits?
Before using preferential tariffs, exporters should check the following:
- Agreement status: Confirm that the relevant trade agreement is in force for the destination market.
- Product classification: Identify the correct Harmonised System (HS) code and check the applicable tariff schedule.
- Rules of origin: Establish that the product meets the agreement’s origin conditions. These may require a minimum level of domestic value addition or a change in tariff classification.
- Certificate of Origin: Apply for the preferential Certificate of Origin (CoO) through the DGFT’s eCoO 2.0 platform on Trade.gov.in. The certificate helps the importer claim the applicable tariff concession, subject to the agreement’s requirements. Setindiabiz professionally supports businesses in acquiring CoO.
- Supporting records: Maintain purchase, production and other records to establish the origin of exported goods.
Exporters should also check whether the importing country’s customs authorities require additional information or verification. Incorrect origin claims can result in denial of preferential tariffs and additional customs liability.
Setindiabiz Support
Foreign businesses planning to establish operations in India may require assistance with Indian subsidiary incorporation, joint venture structuring, FDI documentation and FEMA compliance. Setindiabiz provides India Entry Services covering foreign entity establishment, investment documentation and ongoing regulatory compliance.
Indian businesses preparing to enter overseas markets can also seek support with business registrations, Import Export Code (IEC) registration and GST export compliance, including applicable GST documentation and filing requirements.
FAQs
According to Commerce Minister Piyush Goyal, India has finalised nine FTAs or PTAs over the preceding four-and-a-half years, covering 38 countries. These figures were shared at the 31st CII Partnership Summit in November 2026.
No. The figure includes ongoing trade engagements and represents the estimated combined GDP of potential partner markets. It does not mean that Indian exporters have secured access to markets worth $85 trillion or that exports of this value are assured.
Yes, where their products qualify under the relevant agreement. Exporters must meet the applicable rules of origin, obtain the required Certificate of Origin and comply with destination-market requirements before claiming preferential tariff treatment.
India’s trade agreements are creating more routes for Indian manufacturers and service providers to reach overseas markets. But tariff concessions alone will not secure export orders. Businesses must identify eligible products, meet origin requirements and maintain the necessary records. For foreign investors, the opportunity also depends on choosing the right Indian business structure and completing the applicable regulatory formalities.
