Stories
India FTA Gains Uneven: UAE Exports Surge While Australia and Mauritius Lag
- •A Moneycontrol analysis of trade data reveals that India's free trade agreements have yielded uneven results across different partner countries.
- •Exports to the United Arab Emirates saw a strong 28 percent increase, driven largely by significant growth in consumer and capital goods.
- •Australia recorded modest overall export growth of 2.3 percent, while shipments to Mauritius contracted by 24.3 percent.
- •Newer trade agreements, such as those with the European Free Trade Association and the United Kingdom, show promising early signs of increased bilateral trade activity.
- •Initial experiences indicate that tariff concessions alone do not guarantee a sustained surge in exports without broader market integration.
Key Questions Answered
India's FTAs have delivered uneven results across these three partners. Exports to the UAE grew nearly 28 percent to $36.26 billion, shipments to Australia saw modest growth of 2.3 percent to $7.74 billion, and exports to Mauritius declined by 24.3 percent to $631.8 million.
The UAE emerged as the strongest performer among the established FTA partners, with export gains driven significantly by consumer and capital goods. Consumer goods rose 25.7 percent, while capital goods recorded a sharper increase of 77.1 percent, with both categories accounting for over 90 percent of the export increase.
Bilateral merchandise trade increased 15.08 percent year-on-year to nearly $2 billion in August 2026, marking the first full month after the agreement took effect on July 15. Indian exports rose 10.35 percent, while imports from the UK grew faster at 24.23 percent.
