India Free Trade Agreements 2026 | FTA Benefits for Indian Exporters

India's expanding network of Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) gives Indian exporters a significant competitive advantage in key markets. Understanding and correctly claiming FTA benefits can reduce import duties at destination by 0% to 100%, making Indian goods dramatically more competitive. This pillar guide covers every active FTA and how to leverage them.

What is a Free Trade Agreement?

An FTA is a treaty between two or more countries that reduces or eliminates customs duties on goods traded between them. To claim FTA benefits, exporters must prove their goods meet the Rules of Origin (ROO) — i.e., the goods are genuinely manufactured or substantially transformed in India.

India's Active Free Trade Agreements (2026)

1. India-UAE CEPA (Comprehensive Economic Partnership Agreement)

Signed in February 2022, this is India's most significant recent FTA. In force since May 2022.

• Coverage: 97% of Indian tariff lines get zero or reduced duty access to UAE
• Key sectors: Textiles, gems & jewellery, engineering goods, pharmaceuticals, food products
• Certificate of Origin: Issued by DGFT or authorised EPCs
• Benefit: UAE import duties reduced from 5% to 0% on most Indian goods
• Gateway effect: UAE re-exports to GCC countries — India-UAE CEPA opens the entire GCC market

2. India-ASEAN FTA (AIFTA)

Covers trade with 10 ASEAN nations: Indonesia, Malaysia, Thailand, Singapore, Philippines, Vietnam, Myanmar, Cambodia, Laos, Brunei.

• Duty reduction: 0–5% on most goods for ASEAN markets
• Key exports: Chemicals, machinery, textiles, pharmaceuticals
• Certificate of Origin: Form AI issued by Export Inspection Council or authorised bodies

3. India-South Korea CEPA

• Covers 85% of traded goods with duty elimination
• Strong for engineering, chemicals, and textile exports
• Certificate of Origin: Form IK

4. India-Japan CEPA

• Duty elimination on 94% of Indian exports to Japan over 10 years
• Key sectors: Seafood, textiles, chemicals, engineering goods
• Certificate of Origin: Form IJ

5. India-Sri Lanka FTA (ISFTA)

• Zero duty on most Indian goods exported to Sri Lanka
• Key exports: Textiles, machinery, pharmaceuticals, food products

6. SAFTA (South Asian Free Trade Area)

• Covers India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka, Maldives, Afghanistan
• Reduced duties for intra-SAARC trade
• Strong for textiles, food, and consumer goods

7. India-Mauritius CECPA

• India's first trade agreement with an African nation
• Zero duty on 310 Indian product categories
• Gateway to African market access

8. India-Australia ECTA (Economic Cooperation and Trade Agreement)

• In force since December 2022
• Zero duty on 96% of Indian exports to Australia
• Key sectors: Textiles, leather, gems & jewellery, engineering, pharmaceuticals

FTAs Under Negotiation (2026)

• India-EU FTA: Negotiations ongoing — expected to be transformative for Indian exporters
• India-UK FTA: Advanced negotiations; expected to give Indian textiles and pharma major duty advantages
• India-Canada FTA: Negotiations resumed in 2023
• India-GCC FTA: Separate from UAE CEPA; covers Saudi Arabia, Kuwait, Qatar, Oman, Bahrain

How to Claim FTA Benefits

1. Confirm your product's HS code and check the applicable FTA duty rate in the destination country
2. Verify your product meets the Rules of Origin (ROO) for the relevant FTA
3. Obtain the correct Certificate of Origin (COO) from DGFT or authorised issuing body
4. Include the COO with your export documents
5. Buyer presents COO to destination customs to claim preferential duty rate

Rules of Origin — Key Criteria

• Wholly obtained: Goods entirely produced in India (e.g., agricultural products, minerals)
• Substantial transformation: Goods manufactured using imported inputs must undergo sufficient processing in India — typically measured by Change in Tariff Heading (CTH) or Value Addition (VA) criteria
• Minimum value addition: Most FTAs require 30–35% value addition in India

Related Pillar Guides

• How to Start Exporting from India
• Export Incentives India — RoDTEP & Duty Drawback
• Export Compliance India
• Find International Buyers for Indian Exports