India’s FTA Paradox: Rising Exports, Low Utilisation, And Growing Trade Deficits

Summary

India's exports have grown significantly, with shipments reaching 45.20 billion dollars in May 2026, an 18.01 percent increase from the previous year. The growth is driven by exports of petroleum products, engineering goods, and other key sectors, which have shown resilience and global competitiveness despite global economic uncertainties. However, a widening trade deficit and low utilization of free trade agreement benefits remain major challenges to India realizing its full export potential.