Discuss how Free Trade Agreements have shaped India's recent export performance, with reference to its trade partners in West Asia and the Indo-Pacific.

India's total exports reached a record US$ 863.1 bn in FY 2025-26. The Commerce Ministry credits wider market access under trade agreements for this, especially with the UAE, UK and Australia [1]. FTAs have widened and diversified India's exports. They have not yet corrected its trade balance.

West Asia: CEPA-led gains

• India–UAE CEPA: the UAE was India's largest single FTA export market in FY26, at about US$ 37.36 bn [1].
• The Ministry also credits the recent Oman agreement. Exporters are using more Certificates of Origin, which shows they are actually claiming the tariff preferences [1].

Indo-Pacific: scale with asymmetry

• ASEAN was the largest FTA bloc destination, at about US$ 38.42 bn. Singapore also ranks among the top partners [1].
• India–Australia ECTA: exports rose from about US$ 4 bn in FY21 to US$ 7.28 bn in FY26 [1].
• However, India–ASEAN trade is lopsided. This asymmetry led to a joint review of the ASEAN–India goods agreement (AITIGA) [2].

Wider effects

• Diversification: NITI Aayog's concentration index shows exports spreading across more regions and products [3]. This reduces exposure to tariff shocks from any one market.
• Labour-intensive gains: handicrafts, garments, meat, dairy and marine products are among the high-growth items in H1 FY27 [4]. This supports MSME and farm incomes.
• External stability: the RBI expects recent trade agreements to offset part of the pressure that energy prices put on the current account deficit [5].

Limits

• Imports are growing faster: in H1 FY27, imports grew 15.68% and exports grew 13.84%. Core imports (excluding oil and gold) rose by about US$ 48 bn, while core exports rose by about US$ 28 bn [4].
• Target gap: FTP 2023 aims for US$ 2 trillion of exports by 2030 [6]. That needs roughly 18–23% growth every year, faster than the current pace [4].

FTAs have moved India's exports from a narrow base to a wider set of West Asian and Indo-Pacific partners, but the gains are uneven. The way forward is to conclude the AITIGA review, get more MSMEs to use FTAs, and back market access with stronger domestic manufacturing. This would make trade agreements a lasting engine for the FTP 2023 goal and SDG 8 (decent work and economic growth).