India’s export performance in FY25 has marked a new milestone, with total exports of goods and services touching $825 billion, up from $778 billion in the previous fiscal year. The increase has been driven primarily by strong growth in services exports, even as merchandise exports remained flat due to subdued global demand.

According to Federation of Indian Export Organisations (FIEO), India has now set an ambitious target of achieving $1 trillion in exports in FY26. Key sectors expected to power this growth include electronics, machinery, chemicals, apparel, pharmaceuticals, and agriculture. Within this strategy, textiles are receiving special attention, with a roadmap underway to boost textile exports to $100 billion by 2030. The move capitalizes on new global trade dynamics, including the recent imposition of U.S. tariffs on textile exports from competitors like Bangladesh and Cambodia, which could tilt the market in India’s favor.

In a major relief for the marine sector, the Indian shrimp industry avoided a significant cost burden after U.S. authorities reduced proposed import tariffs from 26 per cent to 10 per cent. This decision helps retain Indian seafood’s price competitiveness in one of its largest markets. Meanwhile, trade negotiations with the United Kingdom are progressing swiftly, with an India–UK free trade agreement expected to be concluded soon. The FTA is likely to eliminate tariffs on several key export categories, including apparel and textiles, further boosting India’s global trade presence.

To support small exporters, the government is finalizing new schemes targeted at MSMEs, focused on easing access to credit, providing export finance, and addressing non-tariff barriers that often hinder international competitiveness. This initiative aligns with broader efforts to deepen India’s export base and foster inclusive trade growth.

Despite global geopolitical uncertainty and softening global demand, India’s export ecosystem remains resilient. Service exports and a steady inflow of remittances are expected to provide a stabilizing buffer against macroeconomic risks. At the same time, the government is stepping up trade vigilance to ensure Indian export channels are not misused for re-routing goods from third countries, particularly China.

As part of India’s outward-looking strategy, diplomatic missions have been directed to actively scout for new export opportunities and partnerships. This reflects a more aggressive posture in global trade engagement, aimed at expanding market access and enhancing India’s presence across emerging and developed economies alike.

With the combined strength of government policy, trade intelligence, and private sector readiness, India is now on a strong footing to cross the $1 trillion export mark in 2025–26 and reinforce its position as a global trade powerhouse.