India’s exporters are increasingly leveraging Free Trade Agreements (FTAs) with Australia and the United Arab Emirates (UAE), as evidenced by the significant rise in the issuance of preferential Certificates of Origin (CoOs) in FY 2024–25. These certificates, which enable exporters to claim tariff benefits under FTAs, are strengthening India’s global trade position and boosting competitiveness.
Key Data on CoO Issuance Under FTAs
| Partner Country | 2023–24 CoOs Issued | 2024–25 CoOs Issued | % Increase |
|---|---|---|---|
| Australia | 64,864 | 77,234 | 19.07% |
| UAE | 98,104 | 122,036 | 24.66% |
| Total (All FTAs) | 684,724 | 720,996 | 5.30% (overall) |
- India-UAE FTA effective from May 2022
- India-Australia FTA effective from December 2022
What Are Certificates of Origin (CoOs)?
Certificates of Origin are official documents used by exporters to prove that goods are manufactured in India, qualifying them for preferential tariff treatment under FTAs. These are critical tools in reducing duties, increasing margins, and enhancing export volume.
Key Trends and Observations
| Category | Details |
|---|---|
| Monthly Growth | April–May 2025 data shows a sustained rise in CoO issuance compared to same months in 2024. |
| Exporter Awareness | More exporters are using FTAs due to increased government outreach and procedural transparency. |
| Trade Growth Implications | The rising CoO figures signal a strengthened trade relationship with Australia and UAE. |
| Location-Specific Benefits | Sectors like textiles, gems, auto parts, and electronics have seen increased FTA-driven exports. |
11 Benefits of FTAs for Indian Exporters
| Advantage | Description |
|---|---|
| 1. Reduced Tariffs | Lower duties make Indian products more cost-competitive abroad. |
| 2. Preferential Market Access | Greater access to FTA partner markets increases sales potential. |
| 3. Improved Competitiveness | Cost savings help exporters compete with global players. |
| 4. Simplified Customs Procedures | Faster and more efficient shipping processes reduce overheads. |
| 5. Global Value Chain Integration | Easier sourcing from partners and increased participation in international production networks. |
| 6. More Foreign Investment | Improved trade relations attract investment in local industries. |
| 7. Market Diversification | Less reliance on a single country, helping hedge against market shocks. |
| 8. Stronger Bilateral Trade Ties | Enhanced political and economic cooperation. |
| 9. SME Empowerment | Small businesses gain access to international markets with fewer barriers. |
| 10. Innovation and Quality Improvements | Exposure to global standards pushes Indian exporters to raise quality benchmarks. |
| 11. Technology Exchange | FTAs facilitate access to modern tech and global expertise. |
Conclusion
The sharp uptick in CoO issuance for trade with Australia and the UAE demonstrates that Indian exporters are increasingly recognizing the strategic and financial benefits of FTAs. With enhanced market access, tariff advantages, and streamlined trade procedures, FTAs are emerging as critical drivers for India’s export growth and global competitiveness. As awareness continues to rise, these agreements are expected to play an even greater role in India’s global trade strategy in the coming years.
Glottis Limited 
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