India pushes export growth with new FTAs, space sector liberalisation and tariff reforms

India aims to raise its share of global merchandise exports from about 1.8% in 2024 to roughly 10% by 2047, according to a WTO report. To achieve this, the government is simplifying export procedures for small firms, expanding district‑level export hubs, and promoting cross‑border e‑commerce.

New trade agreements are central to the strategy. A Trade and Economic Partnership Agreement with the European Free Trade Association (Switzerland, Norway, Iceland and Liechtenstein) pledges $100 billion of investment over 15 years and is expected to create about one million direct jobs, while tariff cuts on industrial goods and pharma inputs are being phased in. India has also liberalised its space sector, allowing up to 100% foreign direct investment under the automatic route for satellite manufacturing and data services, and up to 74% for launch‑vehicle activities.

Under the India‑UK Comprehensive Economic and Trade Agreement, the first round of applications for car‑import quotas has opened, with duties cut from around 110% to as low as 30% for specified vehicle categories. The Export Promotion Mission, backed by a Rs 25,060 crore outlay, supports these initiatives through trade‑finance assistance and export‑facilitation measures. Guidance on rules of origin for the UK‑India FTA has been issued to help exporters claim preferential tariffs.

Together, these measures aim to diversify India’s export markets, attract foreign capital, and position the country as a hub for high‑tech manufacturing and services.