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India’s export performance reflects a broader structural transformation: leveraging strategic trade agreements, bolstering high-growth sectors and adapting to global trade shifts to aspire toward a new growth trajectory that could redefine its role in global commerce in the years ahead
India’s goods and services exports are poised for a strong upswing in the coming years, with industry forecasts estimating total outward shipments could reach $840-850 billion in fiscal year 2025-26 and potentially rise to around $950 billion in FY27. This optimistic outlook is driven by a combination of new free trade agreements and robust performance in dynamic sectors such as electronics, services and technology-led industries, exporters said.
A key driver behind this expected acceleration is the expansion of free trade agreements (FTAs), especially with countries in West Asia and other strategic partners. These bilateral and regional pacts are anticipated to open new markets, improve tariff access and strengthen India’s foothold in global supply chains. Exporters are also eyeing anticipated trade pacts with additional partners — including the UK, Oman and New Zealand — to further enhance market access.
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India’s export mix shows increasing diversification. While traditional merchandise exports continue to play an important role, services exports — particularly in IT, software and business services — have gained significant momentum, helping cushion overall trade performance
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Strong demand for Indian technology and professional services has added resilience to the export basket even as global headwinds persist
The electronics manufacturing sector, now one of the fastest-growing categories in Indian exports, is also expected to contribute substantially to the projected growth, reflecting successful policy focus on value-added production. The Economic Times
Despite these promising projections, exporters caution that rising tariff barriers and climate-linked trade restrictions present notable headwinds. Protectionist policies in some advanced economies and evolving environmental compliance norms — especially on carbon emissions and sustainability standards — could complicate efforts to maintain consistent export growth momentum.
In addition, geopolitical uncertainties and global demand fluctuations remain ongoing challenges. Analysts underscore the importance of strengthening export competitiveness and supply chain resilience to navigate such uncertainties.
