India’s Bilateral Trade to Reach $825 Billion in 2025–26

Commerce and Industry Minister Piyush Goyal has said that global trade is facing severe geopolitical headwinds, but India continues to emerge resilient and is well on track to exceed $825 billion in total exports of goods and services in 2025–26 (FY26).

Highlights:

In the financial year 2024–25, India achieved an all-time high in combined exports of goods and services, reaching USD 825 billion, compared to USD 778 billion in the previous fiscal year. This milestone highlights the country’s trade resilience and adaptive strategies during uncertain times.
Export Projections for 2025–26
According to projections by the Federation of Indian Export Organisations (FIEO)
Overall exports are expected to reach USD 1 trillion, a year-on-year growth of over 21%.
Merchandise exports are likely to increase by 12%, from USD 437 billion in 2024–25 to USD 525–535 billion.
Services exports are projected to grow by about 20%, from USD 387 billion to USD 465–475 billion.
India’s Evolving FTA Strategy

Recent trade FTAs under the Indian Government strategy emphasizes signing FTAs with developed and non-competing economies, such as:

UAE
Australia
United Kingdom
European Union
European Free Trade Association (EFTA)
Oman
Peru
Chile

India–EFTA TEPA:

The Trade and Economic Partnership Agreement (TEPA) with EFTA was signed on March 10, 2024, and is expected to come into effect on October 1, 2025.
EFTA has committed to an investment of USD 100 billion over 15 years in India.

In exchange, India will allow duty-free or low-duty access to several products such as:
Swiss watches
Chocolates
Cut and polished diamonds

What is FTA (Free Trade Agreement):

A Free Trade Agreement (FTA) is a treaty between two or more countries to facilitate trade and eliminate or reduce barriers such as tariffs, import quotas, and duties on goods and services exchanged among them.

Objectives:

• Promote bilateral or multilateral trade
• Enhance market access
• Increase investment flows
• Encourage economic cooperation
• Protect intellectual property rights and promote e-commerce

Key Features:

Zero or reduced tariffs on imports/exports
Rules of origin to determine eligibility for benefits
Provisions for services trade, investment, and dispute settlement
May include labor, environmental, and digital economy clauses
What is EFTA (European Free Trade Association):
The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four European countries not part of the European Union (EU)
EFTA was established in 1960 to promote free trade and economic integration among its member states and with non-EU countries
Switzerland
Norway
Iceland
Liechtenstein

EFTA was established in 1960 to promote free trade and economic integration among its member states and with non-EU countries.

The road map to Mussoorie

CSB IAS ACADEMY