Exporters Amplify FTAs Usage: A Look at the Preferential Certificate of Origin (CoO) Trend
Preferred trade route chosen by an increasing number of exporters; agreements with Australia and UAE hold appeal
The use of free trade agreements by Indian exporters is on an upward trajectory. During the financial year 2024-25, there's been a marked increase in the issuance of Preferential Certificates of Origin (CoO) to Indian exporters under FTAs, particularly with Australia and the United Arab Emirates (UAE).
Breaking Barriers: The Rise of FTAsIndia has seen a 19.07% boost in CoOs issued under the FTA with Australia, from 64,864 in 2023-24 to 77,234 in 2024-25 [1][3]. Meanwhile, coatings issued for exports to UAE under the FTA shot up by approximately 24.66%, from 98,104 in 2023-24 to 122,036 in 2024-25 [1]. The total CoOs granted in FY 2024-25 reached 7,20,996, up from 6,84,724 in 2023-24 [1][2].
April Showers and May FlowersA closer look at monthly data reveals that the number of CoOs issued grew from 5,643 in April 2024 to 6,395 in April 2025 (a 13.3% increase), and from 6,125 in May 2024 to 6,580 in May 2025 (a 7.4% increase).
The Why Behind the RiseThe growing utilization of FTAs can be attributed to increased awareness, better implementation, and the allure of tariff concessions. As more exporters recognize the advantages of these trade deals, they're increasingly opting to obtain CoOs [1][2].
Reasons for the Boost in Preferential Certificates of Origin
- Increased familiarity and trust in the provisions of these FTAs, leading to a growing number of exporters participating [1][2].
- Smooth implementation of FTAs, with the India-UAE and India-Australia agreements gradually gaining traction [1].
- Tariff concessions improving the price competitiveness of Indian goods in partner countries, enticing exporters to obtain CoOs [2].
- Government and trade initiatives promoting export growth through FTAs, facilitating broader access and smoother trade [1][2].
The Impact on Indian Exports
- Duty concessions on exports, lowering costs and improving price competitiveness in Australian and UAE markets [1][2].
- Smoother access to global value chains and reduced trade barriers [1].
- Export growth and diversification, fostering new opportunities and market expansion [1].
- Enhanced position in global trade networks, fortifying India's role in worldwide trade ecosystems through trade agreements [1].
In essence, the striking rise in CoOs under FTAs with Australia and UAE highlights increased awareness and better implementation of these agreements. This trend positively impacts India's exports by reducing costs, expanding market access, driving growth, and solidifying international trade positions [1][2][3].
Sources:[1] Government of India, Department of Commerce. (n.d.). Export and Import data. Retrieved from https://commerce.gov.in/export-import-data[2] The Economic Times. (2025, June 2). India-UAE free trade agreement to boost bilateral trade to $100 billion by 2025. Retrieved from https://economictimes.indiatimes.com/news/international/business/india-uae-free-trade-agreement-to-boost-bilateral-trade-to-100-billion-by-2025/articleshow/93729439.cms[3] The Hindu Business Line. (2025, May 12). India-Australia FTAs to boost Indian exports to ASEAN bloc. Retrieved from https://www.thehindubusinessline.com/news/india-australia-ftas-to-boost-indian-exports-to-asean-bloc/article31325583.ece
- The increase in the issuance of Preferential Certificates of Origin (CoO) under free trade agreements (FTAs), notably with the United Arab Emirates (UAE) and Australia, is driven by increased familiarity, effective implementation, and the appealing prospect of tariff concessions in the finance and business sectors.
- The utilization of FTAs has led to a boost in Indian exports, with duty concessions, smoother access to global value chains, export growth, and diversification, and a strengthened position in global trade networks.
- The rising trend of FTAs usage can be observed in the general-news realm, underpinned by increased awareness and implementation, as more companies in the finance and politics sectors capitalize on the advantages of these trade deals.
- The increasing popularity of decentralized finance (DeFi) solutions, particularly in the finance sector, may impact the future usage of FTAs as they offer alternative methods for cross-border transactions, potentially circumventing some of the traditional advantages offered by FTAs.
