India's exports set to hit $850 billion, but challenges remain

Business Jan 01, 2026

India's exports are on track to reach $850 billion in FY26—a small bump from last year.
While services like IT and consulting are expected to do well, goods exports might stall thanks to global slowdowns and US tariffs.

Indian exporters are finding new markets

Even though shipments to the US dropped by over 20% recently, India's overall exports grew as businesses looked beyond traditional partners.
But new EU carbon rules have already slashed steel sales there by nearly a quarter, making things tricky for some sectors.

Trade deals aren't enough—quality matters

India has signed 18 free trade agreements, but just having deals isn't cutting it.
For real growth, experts say India needs to boost product quality and cut costs—especially in electronics, engineering, and textiles.