India's merchandise exports to countries covered by its free trade agreements surged well ahead of overall export growth in the first quarter of FY27, highlighting the growing effectiveness of the country's trade pacts, the government told Parliament on Friday.
Exports to FTA partner countries rose 25% year-on-year to $43.14 billion during April-June 2026, compared with $34.65 billion in the corresponding period last year, Minister of State for Commerce and Industry Jitin Prasada said in a written reply to the Rajya Sabha.
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In contrast, India's overall merchandise exports increased 16% to $129.32 billion in the quarter from $111.57 billion a year earlier.
The stronger growth also lifted the contribution of FTA partner countries to India's export basket.
Their share in total merchandise exports rose to 33.4% in the April-June period of FY27 from 31.1% in the same quarter of the previous fiscal, reflecting growing reliance on preferential trade agreements to access overseas markets.
The government also pointed to a sharp increase in the number of Certificates of Origin issued under FTAs, a key document that enables exporters to claim preferential tariff benefits.
The number of certificates issued has more than doubled from 3.6 lakh in FY22 to over 7.8 lakh in the first quarter of FY27, indicating greater adoption of India's trade agreements by exporters.
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The commerce ministry said it continuously reviews the effectiveness of FTAs through consultations with industry associations, export promotion councils, trade bodies, Indian missions abroad and other ministries to address implementation challenges and improve market access.
India recorded its highest-ever exports in FY26, with combined merchandise and services exports touching $863.1 billion, up from $676.53 billion in FY22.
While merchandise exports rose to $441.73 billion over the period, services exports surged to $421.29 billion, providing a major boost to the country's overall export performance.
The government also highlighted the contribution of Production Linked Incentive (PLI) schemes, saying that 892 approved projects across 14 sectors had attracted investments exceeding Rs 2.4 lakh crore and generated exports worth more than Rs 15.2 lakh crore as of March 31, 2026.
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