India’s exports to several major free trade agreement (FTA) partner markets recorded strong growth during the first half of FY27, with shipments to Singapore more than doubling and exports to Malaysia and the broader Association of Southeast Asian Nations (ASEAN) region also rising sharply. According to figures presented by the Ministry of Commerce and Industry, exports to Singapore increased 103% year-on-year to $11.07 billion during April–September 2026.
Exports to Malaysia grew 83% to $5.58 billion, while shipments to ASEAN countries increased 58% to $28.06 billion. The figures highlight the growing importance of India’s trade relationships with Asian economies as the government works to improve the utilisation of existing trade agreements and expand access to international markets. The data was presented by Commerce Secretary Rajesh Agrawal on November 13, 2026.
India’s Exports to Singapore, Malaysia and ASEAN Rise Sharply
Singapore recorded the strongest growth among the three major markets highlighted in the Commerce Ministry’s latest data. India’s exports to the country increased from $5.45 billion in April–September FY26 to $11.07 billion in the corresponding period of FY27.
Exports to Malaysia also registered substantial growth, increasing from $3.05 billion to $5.58 billion. Meanwhile, shipments to the wider ASEAN region climbed from $17.75 billion to $28.06 billion.
The export figures are summarised below:
| Export destination | April–September FY26 | April–September FY27 | YoY growth |
|---|---|---|---|
| Singapore | $5.45 billion | $11.07 billion | 103% |
| Malaysia | $3.05 billion | $5.58 billion | 83% |
| ASEAN | $17.75 billion | $28.06 billion | 58% |
| Sri Lanka | — | $3.94 billion | 73% |
| Oman | — | $3.29 billion | 47% |
| Japan | — | $4.10 billion | 40% |
| South Korea | — | $3.91 billion | 24% |
Figures are based on Commerce Ministry data reported for April–September FY27. The ASEAN figure is a regional aggregate and includes Singapore and Malaysia; it should not be added to their individual export values.
The growth indicates that Indian exporters are expanding shipments to several markets where India already has preferential trade arrangements. However, the figures alone do not establish how much of the increase was directly caused by lower tariffs under FTAs. Demand conditions, product competitiveness, exchange rates and changes in trade flows can also influence export performance.
India’s Free Trade Agreement Strategy Gains Momentum
India has expanded its network of trade agreements over the past several years to improve market access for domestic businesses, attract investment and diversify export destinations.
These agreements generally reduce or eliminate customs duties on eligible goods and can also establish rules covering services, investment, professional mobility and other areas of economic cooperation.
India’s major trade arrangements include agreements with ASEAN, Singapore, Malaysia, Japan, South Korea, the United Arab Emirates, Australia, the United Kingdom and the European Free Trade Association (EFTA).
The government’s current focus is increasingly shifting from signing agreements to ensuring that Indian companies actually use the benefits available under them.
For exporters, preferential access can make products more competitive in overseas markets. However, businesses must comply with rules of origin, documentation requirements and product-specific standards to qualify for reduced tariffs.
The government has also been strengthening trade facilitation services to help companies identify suitable markets, understand tariff concessions and complete the documentation required to claim FTA benefits.
India-New Zealand FTA Comes Into Force
Another important development highlighted by the Commerce Ministry was the implementation of the India-New Zealand Free Trade Agreement.
Signed on April 27, 2026, the agreement entered into force on October 20, 2026. It provides immediate zero-duty access for 100% of Indian exports across all sectors, according to the government.
The agreement is intended to improve opportunities for Indian businesses across manufacturing, agriculture, textiles, pharmaceuticals and other export-oriented industries.
New Zealand has also committed to facilitating $20 billion in investments into India over 15 years. The proposed investment areas include:
- Infrastructure and manufacturing
- Renewable energy
- Agricultural technology
- Micro, small and medium enterprises
- Other areas of economic cooperation
The agreement also includes provisions for professional mobility. These include 5,000 skilled visas, employment-related opportunities for students and post-study work opportunities.
For India, the agreement provides another route to diversify export destinations and strengthen commercial ties with the Asia-Pacific region.
However, the agreement has only recently entered into force. Its longer-term impact will depend on how quickly exporters identify opportunities, meet market requirements and establish distribution relationships in New Zealand.
India-EFTA Trade Agreement Completes One Year
The government also highlighted the first anniversary of the India-EFTA Trade and Economic Partnership Agreement (TEPA), which connects India with Switzerland, Norway, Iceland and Liechtenstein.
India’s exports to the four EFTA partner countries increased 5% to $1.03 billion during April–September FY27, compared with $980 million in the corresponding period last year.
The growth was considerably more moderate than the increases recorded in Singapore, Malaysia and ASEAN.
The second India-EFTA Prosperity Summit, held in New Delhi on October 7, 2026, included investment announcements across manufacturing, energy, maritime, healthcare, food processing, aviation and infrastructure finance.
The summit also facilitated business-to-business discussions in advanced manufacturing, healthcare, clean energy and the blue economy.
TEPA is particularly significant because it includes an investment commitment from EFTA countries. The agreement is designed to support greater trade and investment cooperation, with opportunities for Indian exporters in sectors such as pharmaceuticals, engineering, food processing and manufacturing.
The relatively modest 5% export growth during the first half of FY27 also illustrates that preferential market access does not automatically translate into rapid increases in shipments. Exporters need time to build relationships, understand regulations and establish a presence in partner markets.
Other FTA Markets Also Record Export Growth
India’s export growth during April–September FY27 extended beyond Singapore, Malaysia and ASEAN.
Shipments to Sri Lanka increased 73% to $3.94 billion, while exports to Oman rose 47% to $3.29 billion. Exports to Japan grew 40% to $4.10 billion, and shipments to South Korea increased 24% to $3.91 billion.
These markets are important components of India’s broader export diversification strategy.
The India-Oman Comprehensive Economic Partnership Agreement entered into force on June 1, 2026, while the India-UK trade agreement also became effective in July 2026. Both arrangements are expected to provide additional opportunities for Indian exporters.
The government is also pursuing further trade negotiations, including discussions with the European Union and the United States.
Expanding the number of trade partners could reduce India’s dependence on a limited set of export destinations and create opportunities for businesses in sectors such as electronics, engineering goods, textiles, chemicals, pharmaceuticals and agricultural products.
India’s Export Growth and the Wider Trade Picture
India’s broader export performance has also shown momentum during FY27. According to the government, combined merchandise and services exports reached a record $863.1 billion in FY26, including merchandise exports of $441.8 billion and services exports of $421.3 billion.
The government has increasingly positioned FTAs as a tool to support this expansion. Preferential access can help Indian manufacturers compete with suppliers from countries that already enjoy favourable tariff arrangements.
Labour-intensive industries are among the key beneficiaries targeted by India’s trade strategy. Textiles, apparel, leather, footwear, gems and jewellery, marine products, carpets and handicrafts are among the sectors expected to gain from improved access to international markets.
Nevertheless, export growth also depends on factors beyond tariffs. Product quality, logistics costs, reliable delivery, regulatory compliance and the ability to compete on price remain essential for businesses seeking to expand internationally.
The Bigger Picture
The sharp increases in exports to Singapore, Malaysia and ASEAN suggest that India’s existing trade relationships are becoming increasingly important to its export strategy. The figures also show that growth is not restricted to one destination, with Sri Lanka, Oman, Japan and South Korea recording higher shipments as well.
However, export growth should not be treated as proof that FTAs alone are responsible for the increase. The agreements provide preferential access, but businesses must convert those opportunities into actual orders. The relatively modest export growth under EFTA-TEPA also shows that the commercial benefits of trade agreements can take time to materialise.
Looking Ahead
India’s next challenge will be to increase the utilisation of its trade agreements and help more domestic companies access preferential tariff benefits. The implementation of the New Zealand agreement, alongside the continued use of existing arrangements with ASEAN, Singapore, Malaysia and other partners, could create additional opportunities for manufacturers and exporters.
The government will also need to address non-tariff barriers, improve logistics infrastructure and support smaller businesses with export documentation and market intelligence. Whether the strong first-half growth can be sustained through the remainder of FY27 will provide a clearer indication of how effectively India’s expanding trade-agreement network is translating into export gains.
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