Issuance of preferential certificates under FTAs rises, signals higher trade pact use by exporters

The number of preferential certificates of origin issued under free trade agreements implemented so far has recorded a healthy increase, rising to 7,20,996 in 2024-25 from 6,84,724 in 2023-24, indicating greater utilisation of trade pacts by Indian exporters, according to government data.

Commerce Secretary Sunil Barthwal said India's trade under the preferential route is growing.

In a free trade agreement, two countries either significantly reduce or eliminate import duties on the maximum number of goods traded between them.


India has so far implemented over a dozen such agreements with countries including Japan, Singapore, Korea, UAE and Australia.

A certificate of origin is a key document required for exports to those countries with which India has trade agreements. An exporter has to submit the certificate at the landing port of the importing country.

The document is important to claim duty concessions under free trade agreements. This certificate is essential to prove where the goods come from.

"If somebody is taking these certificates, it means that they are utilising the preferential duty which is available under the FTA," Barthwal said.

Availing duty concessions under these agreements improves the competitiveness of Indian exporters.

As per the data, during April-May this fiscal, 1,32,116 certificates have been issued against 1,20,598 certificates in the same period previous fiscal.