Exports from India are growing in volume and also diversifying across products and markets. Examine the role of trade agreements and export-promotion schemes in this, with reference to recent data.

India's total exports (merchandise plus services) rose 16.66% to US$ 568.84 bn in April–October FY 2026-27. Merchandise grew 21.96% and services 10.93% [1]. The growth is also broad-based: 7 of the top 10 export categories grew at double digits, and 1,985 new product-market pairs were added [1]. Trade agreements and promotion schemes drove much of this, but neither tells the whole story.

Role of trade agreements

• Market access: exports to ASEAN and SAFTA partners grew faster than overall exports, which shows that preferential tariffs are being used [1].
• Next frontier: the India-EU FTA is expected to come into force early next year. It should widen access for goods and ease mobility for service professionals [1].

Role of export-promotion schemes

• Tax neutralisation: RoDTEP and RoSCTL (apparel and made-ups only) refund embedded taxes on the principle "do not export taxes". AA, DFIA and EPCG allow duty-free inputs and capital goods [1].
• Integrated support: the Export Promotion Mission (₹25,060 crore, FY26–FY31) brings trade finance, compliance and market access for MSMEs and first-time exporters under one mission [1]. Its RELIEF component (₹497 crore) offsets higher freight and war-risk costs from the West Asia disruptions [1].
• Decentralised diversification: Districts as Export Hubs has identified products in 734 districts and prepared action plans for 590 [2]. This takes local products to new markets.
• Infrastructure and digitisation: 372 SEZs, ICEGATE and ULIP cut time and paperwork [1].

Limits

• Diversification is still small by value: the new pairs earned only US$ 622.1 mn, about 0.1% of total exports [1].
• WTO risk: in DS541 (2019), a WTO panel held the SEZ, EOU, EPCG and MEIS schemes to be prohibited export subsidies. India's appeal is still pending [3].
• Exports are not the external balance: the release gives no import figure for the period, so it says nothing about the trade deficit [1].

Trade agreements opened markets, and promotion schemes made exports cheaper and helped new exporters reach those markets. Together they explain much of the recent growth and diversification. The way forward has three parts: tie SEZ benefits to investment and jobs rather than to exporting, track whether new markets last, and publish the trade balance alongside export data. That would turn a strong year into a lasting, WTO-compatible base for inclusive, export-led growth.