MoCI urges Bengaluru firms to leverage FTAs for export growth

The Ministry of Commerce and Industry (MoCI) on Tuesday called on Bengaluru's large enterprises, small and medium enterprises (SMEs), and global capability centres (GCCs) to make greater use of India's expanding network of free trade agreements (FTAs) to unlock new export opportunities and strengthen the country's position in global markets.Addressing a media briefing in Bengaluru, Darpan Jain said India's services exports reached $421 billion in FY26, with the services sector contributing nearly 70 per cent of the country's total exports. He noted that services trade generated a surplus of around $217 billion, helping offset India's merchandise trade deficit."In the last five years, we have signed nine FTAs with 38 countries. The government's objective is to ensure that through these FTAs, our exports receive the best possible treatment in markets around the world. The opportunities created by these agreements will be realised only if our businesses are able to utilise them," Jain said.
India has significantly expanded its trade engagement in recent years through agreements with partners such as the United Arab Emirates, Australia, the European Free Trade Association bloc and Mauritius. Agreements with the United Kingdom, Oman and New Zealand are expected to come into force in 2026, while a trade pact with the European Union is targeted for 2027.The country is also pursuing trade negotiations with several major partners, including the Gulf Cooperation Council, Canada, Peru, Chile, Israel, Mexico, the Southern African Customs Union, Mercosur and the United States.
Highlighting Bengaluru's strengths in information technology and IT-enabled services, Jain said telecommunications, computer and information services have emerged as among India's fastest-growing export segments, recording a compound annual growth rate (CAGR) of 16.2 per cent in net trade.For MSMEs, he pointed to the government's Export Promotion Mission (EPM), which includes initiatives such as Niryat Protsahan and Niryat Disha. These programmes provide targeted support through export credit, market access assistance, logistics facilitation and trade intelligence services aimed at helping smaller businesses expand their international footprint.
Jain also acknowledged the challenges facing India's services exporters. He said greater mobility for professionals remains a key issue, as many countries continue to maintain restrictions on the temporary movement of skilled workers."Many of our companies seek the free movement of temporary workers so they can deploy personnel and provide services abroad, but this remains a sensitive issue for most countries," he said.He further stressed the need for technological advancement and adaptation to the rapidly evolving artificial intelligence landscape."Another challenge is technological upgradation. How do we ensure that our services use AI and provide higher value-added offerings to the world? That is something we need to work on," Jain said.According to the Commerce Ministry, India's broader FTA strategy now covers markets accounting for nearly $12 trillion in imports and economies with a combined GDP of approximately $56 trillion, underscoring the country's ambition to deepen integration with global value chains and expand export-led growth.

(State Correspondent)