Lav Agarwal calls for stronger industry-government coordination, exporter mentoring and district-level action to convert new market access into real shipments
The Directorate General of Foreign Trade (DGFT) has urged Indian industry associations to move beyond awareness campaigns around free trade agreements (FTAs) and government export-support schemes and focus on converting newly available market access into actual export orders and shipments.
Speaking at the Confederation of Indian Industry’s National Manufacturing Conclave, DGFT Director General Lav Agarwal said India has created significant opportunities for exporters through trade agreements, but their economic value will depend on how effectively businesses use the access available to them.
“Through the trade agreements, India has opened up markets across the globe and created opportunities that can make Indian industry more competitive,” Agarwal said, according to the report. He stressed that the next challenge is implementation on the ground, particularly by helping companies understand tariffs, market requirements, standards and commercial opportunities available under the agreements.
From Trade Agreements to Actual Shipments
India has been expanding its network of trade agreements to provide exporters with preferential access to overseas markets. The India-UK Comprehensive Economic and Trade Agreement entered into force on July 15, 2026, while India has also concluded agreements with Oman and New Zealand in recent months.
The Department of Commerce says the India-Oman CEPA provides duty-free access for Indian exports covering 98.08 per cent of Oman’s tariff lines and representing 99.38 per cent of India’s export value based on the reference period used by the government. The agreement covers opportunities across sectors such as textiles, processed food, transport equipment, marine products, precision instruments and gems and jewellery.
Similarly, the India-UK agreement provides preferential access across a wide range of Indian exports. The government has highlighted opportunities for labour-intensive sectors as well as pharmaceuticals, machinery, auto components and processed food.
However, preferential tariffs alone do not guarantee higher exports. Companies still need to identify buyers, meet technical standards, understand rules of origin, obtain certifications, arrange logistics and build distribution networks in overseas markets.
This is where DGFT believes industry associations can play a larger role.
Industry Associations Asked to Become Export Mentors
Agarwal urged industry bodies to work more closely with potential exporters instead of limiting their role to seminars and awareness programmes.
The proposed approach involves mentoring companies through the entire export process — from identifying suitable markets and understanding FTA benefits to meeting compliance requirements, finding buyers and completing shipments.
This could be particularly important for micro, small and medium enterprises (MSMEs), start-ups and manufacturers that have the capacity to produce export-quality goods but lack experience in international markets.
The government’s Export Promotion Mission is designed to address several of these barriers. Approved by the Union Cabinet in November 2025, the mission has a total outlay of ₹25,060 crore for FY2025-26 to FY2030-31. It operates through two broad components — NIRYAT PROTSAHAN, focused on trade finance, and NIRYAT DISHA, focused on market-readiness and other trade-enabling support.
Export Promotion Mission Targets Financing and Market Barriers
Access to affordable finance remains an important challenge for smaller exporters, particularly when companies need working capital before receiving payment from overseas buyers.
Under NIRYAT PROTSAHAN, the government has included measures such as interest subvention, export factoring, collateral support for export credit, financing assistance for e-commerce exporters and support for diversification into new markets.
NIRYAT DISHA, meanwhile, covers areas including export quality and compliance, international branding and packaging, market-access initiatives, export logistics and warehousing, inland transportation and trade intelligence.
The combination is intended to address problems that can prevent businesses from converting an export opportunity into a completed transaction.
For exporters, the practical question is therefore shifting from “Is there an FTA?” to “How can my company use the FTA to win orders?”
Districts as Export Hubs Could Widen India’s Export Base
Another major focus of Agarwal’s remarks was the government’s Districts as Export Hubs initiative.
The programme aims to identify products and services with export potential at the district level and create District Export Action Plans covering production, competitiveness, aggregation, testing, certification, packaging, logistics and export procedures.
The strategy is important because India’s export activity remains concentrated geographically.
According to figures cited by Agarwal, 10 states account for around 85 per cent of India’s exports, while 15 states account for about 95 per cent. At the district level, the concentration is also significant, with 10 districts contributing roughly 35 per cent of total exports.
The figures highlight the potential for bringing more districts, manufacturers and local business clusters into international trade.
From Local Clusters to Global Markets
The Districts as Export Hubs framework is intended to connect local production capabilities with global demand.
A district with a strong manufacturing, agricultural, engineering, textile, handicraft or food-processing cluster can potentially build an export ecosystem around its existing capabilities.
That requires more than identifying a product. Export-oriented districts also need reliable logistics, testing facilities, packaging standards, financing, customs support, international certifications and access to overseas buyers.
The Commerce Ministry’s framework for District Export Action Plans specifically envisages interventions across the supply chain, including production, productivity, product design, aggregation, certification, packaging, transportation and destination-country standards.
Agarwal therefore called on industry associations to help turn hundreds of district export plans into measurable export activity rather than allowing them to remain planning documents.
MSMEs and Start-ups at the Centre of the Strategy
MSMEs could become a major beneficiary of a more decentralised export ecosystem.
Many smaller businesses already manufacture products that have potential demand overseas but may not have dedicated export teams or sufficient knowledge of international compliance.
Industry associations can potentially bridge this gap by providing market intelligence, buyer connections, technical guidance and mentoring.
The Export Promotion Mission also places particular emphasis on MSMEs, including measures aimed at improving access to export finance and helping businesses diversify into new markets.
For start-ups, e-commerce exports could provide another route to international customers without requiring the same physical distribution infrastructure traditionally needed by larger exporters.
India’s Export Opportunity Is Increasingly About Execution
The government's trade strategy is increasingly combining FTAs, export finance, logistics support, market intelligence and district-level interventions.
But the effectiveness of these initiatives will ultimately depend on execution by businesses.
An FTA can reduce tariffs, but companies still have to identify customers and compete on quality, price, delivery and compliance. Similarly, an export scheme can reduce financing or logistics constraints, but businesses must be prepared to use the support effectively.
This explains Agarwal’s emphasis on a partnership between government and industry.
The government can create the policy framework and market access, while industry associations and companies have to translate those opportunities into commercial transactions.
Market Outlook
India’s expanding trade-agreement network creates a broader potential market for domestic manufacturers, exporters and service providers. The UK and Oman agreements, along with the India-New Zealand FTA, could provide additional opportunities across labour-intensive manufacturing, engineering, pharmaceuticals, food processing, textiles, gems and jewellery and other export-oriented sectors.
The bigger challenge will be utilisation. Higher export growth will depend not only on tariff concessions but also on access to finance, compliance capabilities, logistics, product quality, overseas buyer networks and the ability of smaller businesses to scale.
The push to combine FTAs with the Export Promotion Mission and Districts as Export Hubs therefore signals a shift towards measuring trade policy through actual business outcomes — orders, shipments, new exporters and wider participation across states and districts.
For Indian industry, the opportunity created by market access is increasingly moving from the negotiating table to the factory floor and ultimately to the export shipment.