Industry Odisha Bureau, Sep 05: India’s eight recent FTAs have expanded potential duty-free market access significantly. Electronics, agriculture and gems and jewellery represent major opportunities. Engineering goods offer the largest identified market opportunity available. India’s existing market share remains relatively low in major markets.
These agreements cover the UK, UAE, Oman and Australia specifically. The list also includes EFTA, Mauritius, New Zealand and the EU. EFTA comprises Iceland, Liechtenstein, Norway and Switzerland collectively. Two agreements, New Zealand and EU, remain not yet operational.
Sector-wise opportunities are substantial across India’s manufacturing base. Electronics offers $982 billion in potential duty-free access. Agriculture provides a $631 billion market opportunity for exporters. Gems and jewellery represent a further $442 billion opportunity.
Engineering goods present the largest opportunity at $3 trillion. Marine and leather sectors each exceed $70 billion. These figures represent market access, not guaranteed export earnings. Converting opportunity into actual exports remains the central challenge.
India’s existing presence in major markets remains comparatively limited. The EU imported $6.62 trillion in goods during 2024. India held just 1.23% of that import market. The India-EU FTA is expected operational next year.
The UK imported $815.6 billion in merchandise from the world. India’s share there stood at only 1.88%. Such low shares indicate substantial room for deeper penetration. Labour-intensive sectors could particularly benefit from expanded duty-free access.
The UAE offers a more encouraging export trajectory recently. India’s exports there rose to $37.3 billion in FY26. This grew from $28 billion in FY22, aided by silk and machinery. The UAE trade agreement took effect on May 1, 2022.
Performance elsewhere has been mixed across different partner markets. EFTA shipments held steady near $1.7 billion overall. Australia exports fell to $7.3 billion from $8.3 billion in FY22. Food products and pharmaceutical exports to Australia still grew.
Trade balances tell a more nuanced story than exports alone. India’s Australia deficit narrowed to $6.5 billion from $8.5 billion. Mauritius surplus shrank to $374.66 million from $643 million previously. Officials note raw-material imports often support domestic manufacturing and exports.
Market diversification remains a key benefit beyond immediate export numbers. Reduced dependence on traditional destinations strengthens broader export resilience. Ultimately, realizing these opportunities depends on sustained manufacturing competitiveness. India’s ability to convert tariff access into exports will determine outcomes.
