The Indian government, spearheaded by Commerce and Industry Minister Piyush Goyal, is actively developing a comprehensive Free Trade Agreement (FTA) utilisation roadmap to maximize the benefits of recently signed trade pacts with 38 countries. This strategic initiative, spurred by recent review meetings on May 4 and May 7, 2026, aims to significantly boost Indian exports and domestic manufacturing, targeting an ambitious USD 2 trillion in goods and services exports in the coming years.
Strategic Context: Expanding India’s Global Trade Footprint
Since 2021, India has aggressively pursued and finalized FTAs with key global economies, including Mauritius, Australia, the UAE, Oman, New Zealand, the European Free Trade Association (EFTA), the European Union (EU), the UK, and the US. These agreements collectively encompass 38 nations, representing a substantial global import market worth approximately USD 12 trillion. This extensive network provides Indian businesses with unprecedented access to diverse markets.
Indian sectors poised for duty-free market access under these pacts include agriculture, textiles and apparel, gems and jewellery, leather and leather goods, engineering, electronics, chemicals, and pharmaceuticals. These sectors are identified as key drivers for increasing India’s global trade share and fostering domestic industrial growth.
Despite global economic uncertainties, India’s goods and services exports reached an all-time high of USD 863.11 billion in 2025-26, a 4.6 percent increase from USD 825.26 billion in 2024-25. This robust performance included merchandise exports growing 0.93 percent to USD 441.78 billion and services exports surging 8.71 percent to USD 421.32 billion, demonstrating resilience and significant potential for further growth through enhanced FTA utilization.
Government’s Multi-Pronged Approach to Maximise Pact Benefits
Commerce and Industry Minister Piyush Goyal has convened multiple high-level meetings with industry associations, businesses, and export promotion councils to strategize on increasing FTA utilization. He has consistently urged businesses to actively leverage these pacts to enhance both exports and domestic production capabilities, emphasizing the competitive advantage they offer.
A significant review meeting on May 4, 2026, involved key officers and chief negotiators to assess the ongoing progress of India’s free trade initiatives. This continuous oversight ensures that the government’s trade policy remains dynamic and responsive to global market conditions.
Further illustrating the government’s proactive stance, a dedicated meeting on May 7, 2026, focused on establishing a roadmap for obtaining crucial sanitary and phytosanitary (SPS) approvals for Indian agricultural and fisheries products across international markets. This initiative is vital for ensuring compliant market access for sensitive food items, removing technical barriers to trade.
The implementation strategy involves a multi-pronged approach, integrating Indian missions abroad and various line ministries. Indian missions are specifically tasked with raising FTA awareness in importing countries, gathering precise market intelligence on new opportunities, and expediting the resolution of non-tariff barriers that can impede trade flows.
Concurrently, line ministries are responsible for ensuring sufficient domestic production to meet export demands, aligning products with global quality standards, and actively facilitating trade processes. This coordinated effort aims to create a seamless ecosystem for Indian exporters.
Expert Insights and Economic Momentum
Shishir Priyadarshi, President of CRF and former Director at the World Trade Organization (WTO), emphasizes that Indian businesses should transcend viewing FTAs merely as tariff-cutting mechanisms. He states their true value lies in enabling firms to integrate into global value chains, diversify supply chains, and establish themselves as reliable partners in an increasingly fragmented global economy.
This perspective highlights a strategic shift from simple market access to deeper economic integration, positioning India as a crucial player in global supply chains. The government’s focus on both tariff and non-tariff barriers aligns with this broader vision.
The robust export performance in 2025-26 further supports the government’s ambitious targets. Merchandise exports grew 0.93 percent to USD 441.78 billion, while services exports surged 8.71 percent to an all-time high of USD 421.32 billion. These figures demonstrate India’s growing competitiveness and resilience in both goods and services sectors despite global headwinds, setting a strong foundation for the USD 2 trillion export goal.
Forward Outlook: What’s Next for Indian Trade
This concentrated governmental push signifies a pivotal moment for Indian businesses, offering unprecedented opportunities to scale operations and expand their global footprint. The comprehensive focus on both tariff and non-tariff barriers, coupled with active engagement from diplomatic missions and domestic ministries, creates a more supportive and integrated ecosystem for exporters.
Businesses are now uniquely positioned to capitalize on reduced duties and streamlined market access, particularly in high-demand sectors such as agriculture, textiles, engineering, and pharmaceuticals. The proactive efforts to secure SPS approvals will unlock new markets for Indian food products.
The emphasis on integrating into global value chains, as advocated by experts, suggests a long-term vision for India to become a more integral and resilient part of the global trading system. The effectiveness of this detailed roadmap will be crucial in determining India’s trajectory towards its ambitious USD 2 trillion export goal and its strategic positioning in future global trade landscapes. The coming months will reveal the initial impacts of these intensified efforts on India’s export growth and its global trade standing.
