India targets $1 trillion exports as FTAs now cover two-thirds of global trade: Piyush Goyal

India now has preferential trade access covering two-thirds of global trade, following the conclusion of multiple free trade agreements since 2021. The FTAs ...

What Happened

India now has preferential trade access covering two-thirds of global trade, following the conclusion of multiple free trade agreements since 2021.
The FTAs concluded include pacts with Mauritius, Australia, the UAE, Oman, New Zealand, EFTA (European Free Trade Association), the European Union, the UK, and the US — covering 38 countries whose combined global imports stand at approximately USD 12 trillion.
The India–EU FTA, concluded on January 27, 2026, is described as the world's largest free trade zone by population (2 billion people) and covers approximately 25 percent of global GDP.
The India–New Zealand FTA, signed April 27, 2026, grants India 100 percent duty-free access for all 8,284 of its export items.
The government's stated target is USD 1 trillion in merchandise exports and USD 1 trillion in services exports by 2030, as articulated in the Foreign Trade Policy 2023.

Static Topic Bridges

Foreign Trade Policy (FTP) 2023

The Foreign Trade Policy 2023, notified on March 31, 2023 (effective April 1, 2023), is India's primary instrument for governing merchandise and services export promotion. Unlike previous five-year policies, FTP 2023 has no fixed end date and will be updated on a rolling basis. It is administered by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry.

Export target: USD 2 trillion by 2030 (USD 1 trillion merchandise + USD 1 trillion services)
Key policy features: trade facilitation, e-commerce export promotion, Rupee trade encouragement, districts as export hubs
E-commerce exports estimated to reach USD 200–300 billion by 2030 under FTP 2023
DGFT administers FTP under the Foreign Trade (Development and Regulation) Act, 1992

Connection to this news: The $1 trillion merchandise export target is the anchor goal of FTP 2023; the FTA network now being described as covering two-thirds of global trade is the key instrument through which the government intends to achieve market access for Indian exports.

Free Trade Agreements (FTAs): Typology and Structure

A Free Trade Agreement (FTA) is a treaty between two or more countries to reduce or eliminate tariffs, quotas, and trade barriers on goods and services. FTAs can be narrow (goods only) or comprehensive. A Comprehensive Economic Partnership Agreement (CEPA) is a broader form that includes goods, services, investment, and intellectual property. A Comprehensive Economic Cooperation Agreement (CECA) is similar in scope to a CEPA.

India–UAE CEPA: concluded February 2022, entered into force May 1, 2022 — India's fastest-negotiated CEPA
India–Australia ECTA (Economic Cooperation and Trade Agreement): interim deal, signed April 2022; goods focus; comprehensive CECA under negotiation
India–EU FTA: concluded January 27, 2026; covers goods, services, digital trade, IP, sustainability across 20 chapters; EU liberalises 99.5% of tariff lines for Indian goods; India eliminates 96.6% of tariff lines for EU goods
India–UK FTA: concluded 2026; reduces tariffs on UK exports to India by up to £400 million per year initially, rising to £900 million after 10 years
Rules of Origin provisions determine whether a product qualifies for preferential tariff treatment under an FTA
WTO's Most Favoured Nation (MFN) clause generally prohibits discriminatory tariffs; FTAs are permitted as exceptions under GATT Article XXIV

Connection to this news: India's strategy of signing FTAs with major trade partners is designed to give Indian exporters preferential access to markets that collectively represent two-thirds of global trade, thereby creating a structural advantage for reaching the $1 trillion merchandise export target.

India–EU FTA: Key Features

The India–European Union Free Trade Agreement, concluded January 27, 2026 after nearly two decades of negotiations, represents a landmark in India's trade diplomacy. The EU is India's largest trading partner bloc.

Concluded: January 27, 2026, at Hyderabad House, New Delhi
Coverage: 2 billion people, ~25 percent of global GDP, ~one-third of world trade
Tariff liberalisation: EU eliminates 99.5% of tariff lines; India eliminates 96.6% of tariff lines
Phase-in: ~49.6% of tariff lines eliminated immediately; remaining phased over 5, 7, or 10 years
Includes provisions on Carbon Border Adjustment Mechanism (CBAM) — important for Indian exporters in steel, aluminium, cement, fertilisers, and electricity sectors
Services: EU offers best-ever terms across 144 sub-sectors including IT, professional services, and education

Connection to this news: The India–EU FTA is the centrepiece of the FTA-driven export strategy — by itself, it provides tariff-free or reduced-tariff access to one of the world's wealthiest and largest consumer markets, directly supporting the $1 trillion target.

Rules of Origin and FTA Utilisation

Rules of Origin (RoO) are the criteria used to determine the national source of a product for the purpose of applying preferential tariff treatment under an FTA. Poorly designed RoO, or lack of awareness among exporters, leads to low FTA utilisation — a persistent problem for India.

India's FTA utilisation rate has historically been low (estimated 25–35% for some agreements)
GTRI (Global Trade Research Initiative) has noted that India must shift focus from signing FTAs to utilising them
The government is working on an FTA utilisation plan targeting MSMEs and local export clusters
Value addition thresholds and change-in-tariff-heading are common RoO criteria

Connection to this news: Even with FTAs covering two-thirds of global trade, the actual export gains depend on whether Indian exporters — particularly MSMEs — are aware of and equipped to meet Rules of Origin requirements to claim preferential tariff rates.

Key Facts & Data

India's merchandise + services export target: USD 2 trillion by 2030 (USD 1 trillion each)
FTA network: 38 countries, combined imports ~USD 12 trillion
India–EU FTA concluded: January 27, 2026
India–EU FTA coverage: 2 billion people, ~25% of global GDP
India–New Zealand FTA: 100% duty-free access for all 8,284 Indian export items
India–UAE CEPA entered into force: May 1, 2022
Foreign Trade Policy 2023 effective date: April 1, 2023; administered by DGFT under FTDR Act, 1992
FTA exception to MFN principle: GATT Article XXIV