FTA Impact: Indian Exports to Australia and UAE Surge in 2025

India is witnessing a notable rise in exports to key trade partners Australia and the United Arab Emirates (UAE) following the implementation of Free Trade Agreements (FTAs). These deals are reshaping the contours of India’s international trade landscape and enhancing market access for Indian goods and services.

Overview: What Are FTAs?

Free Trade Agreements (FTAs) eliminate or reduce tariffs, quotas, and trade barriers between signatory nations. For India, these agreements help improve global competitiveness and enable easier access to new markets.

India-Australia and India-UAE FTAs Explained

• India-Australia ECTA (Economic Cooperation and Trade Agreement): Came into force in late 2022
• India-UAE CEPA (Comprehensive Economic Partnership Agreement): Signed in 2022, operational since 2023

These FTAs have:

• Removed tariffs on key Indian exports
• Streamlined customs procedures
• Boosted business-to-business trade cooperation

Export Growth Data: The Numbers Behind the Surge

According to official trade data for FY 2024-25:

• India’s exports to UAE grew by 12.5% year-on-year, led by gems & jewellery, engineering goods, and food items.
• Exports to Australia jumped by 15.8%, driven by textiles, pharmaceuticals, and electrical machinery.

This growth has outpaced India’s global average export rate of ~4.5%.