Tuesday, July 21, 2026

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July 21, 2026 6:48 PM IST

exports | commerce and industry ministry | Free Trade Agreements | FTAs | export markets

Government expands FTAs, export promotion measures to diversify export markets

The government has intensified efforts to diversify India’s export markets by expanding its network of Free Trade Agreements (FTAs), pursuing trade negotiations with major economies, and introducing a series of export promotion and logistics reforms aimed at strengthening the country’s global trade footprint.

The initiatives are intended to help Indian exporters navigate evolving geopolitical and economic challenges while improving market access, boosting exports and enhancing the competitiveness of domestic industries, particularly micro, small and medium enterprises (MSMEs), startups and labour-intensive sectors.

According to the Commerce and Industry Ministry, recent measures include expanding the network of Free Trade Agreements and Comprehensive Economic Partnership/Cooperation Agreements (CEPAs/CECAs), pursuing trade negotiations with key economies, promoting exports through the Export Promotion Mission, Indian Missions abroad, Export Promotion Councils and industry bodies, implementing district-specific export initiatives under the Districts as Export Hubs (DEH) programme, and conducting capacity-building programmes for exporters.

The Ministry said FTAs are aimed at increasing bilateral trade by expanding market access, encouraging investment and leveraging trade complementarities to create greater export opportunities. These agreements are expected to benefit labour-intensive sectors such as textiles, apparel and leather goods while generating employment and enhancing India’s global competitiveness.

The agreements also include provisions relating to Technical Barriers to Trade (TBT), which seek to improve transparency, promote mutual understanding of standards and technical regulations, and facilitate easier access for Indian products in overseas markets. The government continues to engage with trading partners through bilateral, regional and multilateral mechanisms to address non-tariff barriers, including sanitary and phytosanitary measures, regulatory requirements and conformity assessment procedures. Regular meetings under joint committees and working groups have also been established to resolve market access issues, particularly in key export destinations such as the European Union, Africa and Southeast Asia.

To strengthen cross-border e-commerce exports, especially for MSMEs, artisans and startups, the government has introduced several policy and facilitation measures. These include the Export Promotion Mission (EPM), launched in 2025 with a financial outlay of ₹25,060 crore for the period from 2025-26 to 2030-31.

The mission comprises two sub-schemes. The NIRYAT PROTHSAHAN component focuses on improving access to export finance through interest subvention, export factoring, collateral guarantees, credit guarantees for e-commerce exporters and credit enhancement support. The NIRYAT DISHA component is designed to strengthen trade enablers such as export quality, compliance, international branding, packaging, market access initiatives, export logistics, warehousing and trade intelligence.

The Ministry has also launched the E-Commerce Export Hub (ECEH) initiative on a pilot basis to create an integrated ecosystem for e-commerce exports by facilitating logistics, customs clearances and other export-related services.

Under the Districts as Export Hubs initiative, each district is encouraged to identify three to five products or services with export potential to promote decentralised export growth through targeted interventions.

Several regulatory reforms have also been introduced to simplify exports through courier mode. The Reserve Bank of India has relaxed export reconciliation requirements for shipments valued up to ₹10 lakh by allowing export transactions to be closed based on exporter declarations and bank reconciliation. In addition, the Directorate General of Foreign Trade and the Central Board of Indirect Taxes and Customs have removed the ₹10 lakh per-consignment limit for courier exports and simplified the re-import process for export rejects and returned goods in cross-border e-commerce.

The Ministry said logistics reforms under the PM Gati Shakti National Master Plan are expected to reduce logistics costs through integrated multimodal infrastructure planning. Exporters also continue to benefit from the Refund of Duties and Taxes on Exported Products (RoDTEP) Scheme, which reimburses un-refunded duties, taxes and levies incurred during the production of exported goods.

To support MSMEs, the Ministry of MSME has established 65 Export Facilitation Centres across the country to provide mentoring and handholding support for exporters. The Ministry’s International Cooperation Scheme also helps MSMEs participate in international trade fairs, exhibitions, conferences and buyer-seller meets while reimbursing eligible expenses.

The Ministry highlighted that India has signed several major trade agreements in recent years, including those with Mauritius, the United Arab Emirates, Australia, the European Free Trade Association (EFTA), Oman and the United Kingdom. The India-New Zealand Free Trade Agreement, signed in April 2026, is currently under the ratification process.

The Ministry also noted that negotiations are underway for trade agreements with the Eurasian Economic Union, Peru, Chile, Israel, Canada and the Maldives, besides upgrade negotiations with South Korea, Sri Lanka and Australia. It added that the review of the ASEAN-India Trade in Goods Agreement is also in progress.

The information was provided by Minister of State for Commerce and Industry Jitin Prasada in a written reply in the Lok Sabha.

Last updated on: 21st July 2026

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