India's FTAs with Australia, UAE Show Mixed Results for Exporters Amidst Competition

• India's recent FTAs with Australia and UAE yielded mixed but largely encouraging outcomes for exporters, gaining market share in many segments.
• Under Australia's ECTA, India's import share rose in 857 product categories (79% of traded value) but declined in 2,072 categories.
• UAE's CEPA saw India's import share increase in 1,597 categories (61.5% of traded value), yet faced tougher competition with declines in 2,564 categories.
• Gains were notable in passenger vehicles, diamonds, and pharmaceuticals, while losses occurred in areas like cast articles of iron and steel.
• FTAs open doors, but sustained export success requires fundamental competitiveness, quality, scale, and supply-chain reliability beyond just tariff relief.

Why It Matters: FTAs boost Indian exports but highlight the critical need for fundamental competitiveness to sustain gains.