Increase in Preferential Certificate Issuance Under FTAs Signals Enhanced Advantages for Indian Exporters

The issuance of preferential certificates of origin by India has seen a notable rise in 2024-25, benefiting exporters through tariff advantages under free trade agreements. This increase is evident with countries like Korea, Malaysia, and Japan, showcasing the growing utility of these agreements for Indian exporters.

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In 2024-25, India issued 7,20,914 preferential certificates of origin, up from 6,84,724 in 2023-24. These documents are crucial for exporters to claim tariff benefits under free trade agreements, enhancing the competitiveness of Indian products in foreign markets.

Trade Agreements Boost Export Benefits

Under the FTAs with Korea and Japan, India issued 54,644 and 47,809 certificates respectively in 2024-25. This marks an increase from the previous year's figures of 52,158 for Korea and 42,306 for Japan. The data comes from the commerce ministry.

For Malaysia, India issued 4,664 certificates in 2024-25 compared to 4,370 in the prior year. Similarly, under the trade pact with Sri Lanka, certificates rose to 19,267 from 12,520 in the same period.

ASEAN and SAFTA Agreements

The ASEAN agreement saw India issuing 1,79,965 certificates last fiscal year compared to 98,104 in 2023-24. ASEAN includes nations such as Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Regarding the South Asia Free Trade Agreement (SAFTA), India issued 67,562 certificates last year against 58,269 in the previous year. These documents facilitate smoother access to global value chains for Indian goods.

Strengthening Trade Relations

Free trade agreements involve reducing or eliminating import duties on many traded goods between countries. India has over a dozen such agreements with nations including Japan, Singapore, Korea, UAE and Australia.

The rising issuance of these certificates highlights stronger trade ties between FTA partners. It also indicates increased awareness among Indian exporters about leveraging these agreements' benefits.

An official noted that this trend reflects a growing understanding among exporters about the advantages of these trade pacts. The increased issuance underscores the strengthening of trade relationships between India and its FTA partners.

With inputs from PTI