CoOs issued to the UAE under the FTA were more than those issued to Australia
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India’s free trade agreements (FTAs) with the UAE and Australia are being utilised better by Indian exporters as reflected in the rise in issuance of preferential certificates of origin (CoO) under the pact. These are essential to claim preferential tariff benefits, according to the government.
The number of preferential CoOs issued by India, under FTAs with Australia and the UAE, increased by 19 per cent and 24.7 per cent respectively, in 2024-25, according to data by the Commerce Department.
“This consistent rise underscores the growing utilisation of these FTAs, likely driven by increased outreach, greater clarity on procedural requirements, and expanding trade relations,” according to an official in the Commerce & Industry Ministry.
Utilisation concerns
India has issued 77,234 such certificates in 2024-25 under the FTA with Australia, as against 64,864 in 2023-24 – up 19.07 per cent. Similarly, 122,036 certificates under the FTA with the UAE were issued in 2024-25 as against 98,104 in 2023-24 – up 24.66 per cent.
In total, 7,20,996 certificates have been granted during 2024-25. It was 6,84,724 in 2023-24, the data showed.
“These certificates are essential for Indian exporters to claim preferential tariff benefits under respective trade agreements, thereby enhancing the competitiveness of Indian goods in partner markets and facilitating smoother access to global value chains,” the official said.
Doubts have often been cast over the effectiveness of the FTAs signed by India with other trading partners, including the ASEAN bloc, South Korea and Japan, on the ground that its utilisation is low. The Commerce Department is now focussed on improving the utilisation of its FTAs by addressing concerns such as high cost of compliance to regulatory hurdles.
UAE takes over
Both the FTAs with the UAE and Australia were implemented in 2022. While the one signed with the UAE was a full-fledged comprehensive agreement, the pact entered into with Australia was an interim one including mostly goods. India and Australia are now working on a comprehensive economic cooperation agreement.
The trend is also evident in the monthly data for April and May 2025, the official said. The number of CoOs issued under the FTA with Australia grew 13.3 per cent (year-on-year) in April 2025 to 6,395, and 7.4 per cent in May 2025 to 6,580.
The rise was sharper in case of CoO issuance under India’s FTA with the UAE. The CoOs issued under the pact increased 35.4 per cent in April 2025 to 11,825 and 28.3 per cent in May 2025 to 11,507, per the data.
Published on June 20, 2025