Indian exporters are reaping huge rewards as the issuance of preferential certificates of origin under Free Trade Agreements (FTAs) soars in 2024-25, unlocking significant tariff benefits and boosting global competitiveness. According to the Commerce Ministry, the number of certificates issued climbed to 7,20,914 this fiscal year, up from 6,84,724 in 2023-24, signaling growing utilization of trade pacts with countries like Korea, Japan, Malaysia, and ASEAN nations.

Key Growth in Trade Pacts

The data reveals a notable rise in certificates issued under specific FTAs:

• Korea: 54,644 certificates in 2024-25, up from 52,158 in 2023-24.
• Japan: 47,809 certificates, compared to 42,306 last year.
• Malaysia: 4,664 certificates, a jump from 4,370.
• Sri Lanka: 19,267 certificates, a sharp increase from 12,520.
• ASEAN: A whopping 1,79,965 certificates, nearly double the 98,104 issued in 2023-24.
• SAFTA: 67,562 certificates, up from 58,269.

These certificates allow Indian exporters to claim reduced or zero import duties under FTAs, making Indian goods more competitive in global markets.

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Why It Matters

FTAs with countries like Japan, Korea, Singapore, UAE, and Australia enable India to slash trade barriers, fostering smoother access to international markets. The surge in certificate issuance reflects stronger trade ties and growing awareness among exporters about leveraging these agreements. “This trend highlights the increasing advantage for Indian businesses in global value chains,” an official noted.

A Boost for Indian Exports

With over a dozen FTAs in place, India’s exporters are capitalizing on lower tariffs to expand their reach. The rise in preferential certificates underscores the strengthening economic bonds with partner nations and positions India as a formidable player in global trade. As awareness grows, Indian businesses are set to unlock even greater opportunities on the world stage.

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