India’s New FTAs Open Bigger Markets, But Ground To Cover

A presentation by Ajay Bhadoo, Managing Director of the Gujarat Mineral Development Corporation (GMDC) and a former Additional Secretary in the Union Ministry of Commerce and Industry, at The Secretariat’s Gujarat FTA Conclave on 14 October 2026, highlighted the changing geography of India’s trade partnerships.

According to the presentation, newer FTA partners collectively represent an import absorption capacity of US$ 14 trillion, compared with US$ 5.2 trillion for earlier FTA partners.

The domestic exporters can now look forward to business opportunities in a much larger market. However, greater market access does not necessarily translate into higher exports. India’s ability to increase its share will depend on the capacity of domestic businesses to compete in these markets and meet their quality requirements.

The gap between market potential and India’s current export presence is evident in the European Union. According to Bhadoo, India accounts for 1.66% of EU imports of marine products, while its share in textiles and apparel stands at 3.39%. Its share in electronics is 1.30%, pharmaceuticals 1.14%, and engineering goods 0.91%.

These figures point to considerable scope for India to expand its presence, particularly in electronics, pharmaceuticals and engineering goods, where its share of EU imports remains below 1.5%.

Engineering goods offer significant potential for expanding India’s manufacturing exports. The newer FTA destinations account for nearly US$ 3 trillion in annual engineering demand, representing a substantial market for Indian manufacturers.

There is also room for greater market penetration in chemicals and petrochemicals. India accounts for 3.29% of imports in this sector in the EU and 2.34% in the UK. These figures suggest that Indian producers have further scope to strengthen their presence in both markets.

Pharmaceuticals present a similar opportunity, although India’s market share differs between the UK and the EU. India accounts for 3.3% of UK pharmaceutical imports, compared with 1.14% of EU imports. Expanding exports will require businesses to navigate market specific regulatory requirements and compete with established suppliers.

Textiles and apparel offer another avenue for growth. Bhadoo’s presentation points to a market opportunity of US$ 359 billion, highlighting the scope for India to expand its presence across international destinations, including the EU and the UK.

These figures underline considerable opportunities available to Indian exporters as the country deepens its trade ties with developed markets. However, the actual impact of FTAs on businesses will largely depend on their ability to convert improved market access into orders and sustain export growth.

Expanding India’s presence in these markets will also require greater competitiveness, compliance with technical and regulatory requirements, reliable supply chains, and stronger distribution networks. For Indian industry, the key challenge is to capture a larger share of the demand available in these bigger markets.