India’s New FTAs To Boost Manufacturing And Exports
India’s new-generation Free Trade Agreements (FTAs) are expected to accelerate manufacturing growth, revive private investment, and strengthen global supply-chain integration, according to Yes Securities.
The brokerage highlighted Electronics, Pharmaceuticals, and Engineering Goods as the biggest beneficiaries, while noting that the agreements, combined with Production-Linked Incentive (PLI) schemes and the global China+1 sourcing strategy, could support India’s ambition of achieving US$1 trillion in merchandise exports by 2030.
FTAs with the UAE, Australia, the UK, EFTA nations, and ongoing negotiations with the EU, Oman, and New Zealand are being complemented by industrial corridor development, port modernisation, and supply-chain localisation initiatives.
Yes Securities said stronger export demand could improve capacity utilisation, encourage fresh private-sector capex, and drive a long-term manufacturing-led growth cycle. The agreements are also expected to enhance opportunities for services exports, particularly in IT, consulting, engineering R&D and financial services.
However, the report cautioned that FTAs alone will not guarantee export success. High logistics costs, expensive power, regulatory complexity, and lower labour productivity remain key challenges. Without addressing these structural bottlenecks, rising imports could outpace export growth and widen trade deficits.
