India’s Director General of Foreign Trade, Lav Agarwal, has urged industry associations to convert India’s free trade agreements and export schemes into actual shipments, calling for district-level and cluster-level mentoring of exporters. The call, made at the CII National Manufacturing Conclave, links the Export Promotion Mission with the Districts as Export Hubs initiative.
India has implemented trade agreements with the UK and Oman, and the agreement with New Zealand is expected to follow next month, according to Business Standard’s report of September 29, 2026. Agarwal said the pacts have opened markets but that opportunities must translate into tangible exports.
How Concentrated Are India’s Exports?
Exports are heavily clustered. Ten states account for about 85% of India’s total exports, and 15 states for around 95%. At the district level, ten districts contribute roughly 35% of the total. Jamnagar alone accounts for 8.29%, Pune for 6.57% and Kanchipuram for 5.98%.
What Is the DGFT Asking Industry Bodies to Do?
Agarwal asked associations to move beyond awareness campaigns and to mentor exporters directly at district and cluster levels. He called for implementation of all 11 components of the Export Promotion Mission, which the Union Cabinet approved in November 2025, and for execution of more than 500 district export action plans. He also stressed integrating MSMEs and startups into global value chains.
What Do the Numbers Say About Export Momentum?
Commerce Minister Piyush Goyal has said merchandise exports rose more than 15% through September 21 of the current fiscal year. Official data show April-August exports up 17.85% to $215.91 billion, while imports rose 18.21% to about $363 billion, implying a widening trade gap.
Market and Trade Reaction
Exporters face a difficult external environment, including the disruption around the Strait of Hormuz, higher freight and energy costs and a weaker rupee. Industry bodies such as CII have been pushing for faster FTA utilisation so smaller firms can claim tariff preferences in partner markets.
What Happens Next?
The New Zealand agreement is the next pact expected to come into force. April-September 2026-27 trade data is due in mid-October, which will show whether FTA utilisation is lifting shipments. The DGFT is expected to keep pressing associations on cluster mentoring through the second half of the year.
Frequently Asked Questions
What did the DGFT ask industry to do?
Director General of Foreign Trade Lav Agarwal asked industry associations to convert FTAs and export schemes into real exports by mentoring exporters in districts and clusters.
Which FTAs has India implemented?
India has implemented trade agreements with the UK and Oman, with the New Zealand agreement expected next month.
Which districts export the most?
Jamnagar leads with 8.29% of India’s exports, followed by Pune at 6.57% and Kanchipuram at 5.98%. Ten districts together contribute about 35%.
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