India to fast-track FTAs with EU, Oman, New Zealand to diversify exports, says commerce ministry

Commerce Minister Piyush Goyal

The commerce ministry is looking to spread its bets on exports by speeding up trade agreements with the likes of the European Union, Oman, New Zealand, Peru and Chile, it said on August 14.

A quicker review of the existing free trade agreement (FTA) with the ASEAN bloc as well as faster implementation of the deal with the UK are also on the agenda, the ministry said.

“We are fast-tracking FTA talks with the EU, we have also asked the UK to fast-track processes so that the deal can come into effect sooner,” Commerce Secretary Sunil Barthwal said.

While the next round of talks for the India-EU FTA is scheduled for next month, the trade deal with the UK signed in July may take up to a year to come into force given the lengthy ratification processes in Britain.

India’s trade deal with European Free Trade Association nations—Iceland, Liechtenstein, Norway and Switzerland—is expected to be implemented from October 1 this year, while talks have concluded for the one with Oman and is likely to be signed soon, Barthwal said.

The commerce ministry is also expanding its focus to top 50 nations that import Indian goods through mobilisation of missions abroad for export promotion efforts. This is alongside continued emphasis on 20 countries of significance covering more than 60 percent of India’s share in exports.

Apart from this, the ministry is looking to explore new markets and products for exports as well as focusing on “complete saturation” of the existing FTAs as in the case of the limited trade pact with Australia.

It also plans to speed up the implementation of the Export Promotion Mission.

In the budget for 2025-26, the finance ministry had allocated Rs 2,250 crore towards this mission, with an aim to boost India's micro, small and medium enterprises sector. However, this scheme is yet to be rolled out.

India exported goods worth $433.56 billion in FY25. The country’s top export destinations are the US, United Arab Emirates, Netherlands and China, in that order.