FTA impact : India sees export uptick in trade with Australia, UAE
NEW DELHI : In a move that reflects India’s policy emphasis on boosting exports through Free Trade Agreements (FTAs), the country’s trade pacts with Australia and the United Arab Emirates (UAE) are beginning to deliver visible outcomes.
A sharp rise in the issuance of Preferential Certificates of Origin (CoO) to Indian exporters during FY25 signals growing utilisation of tariff concessions under the free trade pacts.
A Preferential Certificate of Origin is a paper that shows where a product was made, so that it can get lower taxes when shipped to another country under a trade deal.
According to a commerce ministry report reviews, preferential Certificates of Origin (CoOs) issued under the India-Australia Economic Cooperation and Trade Agreement (ECTA) rose to 77,234 in FY25, marking a 19.1% increase from 64,864 in FY24. The momentum continued into the first two months of FY26, with April and May 2025 registering year-on-year growth rates of 13.3% and 7.4%, respectively.
For Australia, 5,643 CoOs were issued in April 2024, rising to 6,395 in April 2025. Similarly, 6,125 CoOs were issued in May 2024, which rose to 6,580 in May 2025.
These certificates, which allow exporters to access lower or zero duties in partner countries, saw strong growth under both the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) and the India-UAE Comprehensive Economic Partnership Agreement (IUCEPA), highlighting deeper integration into partner markets and increasing awareness among exporters.
The steady climb reflects a strengthening trade relationship and growing awareness among Indian exporters of the agreement’s benefits, particularly in sectors such as textiles, leather, gems and jewellery, and engineering goods, where tariff concessions are actively utilised.
The rise was even more pronounced under the IUCEPA (UAE), where CoO issuances jumped by 24.7%, from 98,104 in FY24 to 122,306 in FY25. In April 2025 alone, 11,825 certificates were issued—35.4% higher than the same month last year. May figures followed suit, with a 28.3% increase over the previous year to 11,507.
A senior commerce ministry official attributed the sharp increase to greater clarity on documentation procedures, faster processing timelines, and rising demand from UAE-based buyers for Indian products including food items, machinery, electricals, and chemicals.
While addressing a press conference on 16 June, outgoing Commerce Secretary Sunil Barthwal said that the department is examining the impact of FTAs that have already been signed, especially as several new ones have been concluded in recent years. He noted that there is now a greater thrust on ensuring a higher rate of realisation from these agreements.
Source : Moneycontrol
