Tariff-hit 2025, but India's exports chart a steady course, momentum likely to extend into 2026 |
New Delhi: The year of tariffs was marked by a steep 50 per cent US duty on India’s exports in 2025, but Indian exporters adapted by diversifying markets, keeping export growth resilient with momentum likely to extend into 2026.
As one of the senior-most officers of the commerce ministry put it, “trade is like water, it finds its own course”, the country’s merchandise exports responded with agility to a series of disruptions caused by the Covid-19 pandemic (2020-22), the Russia-Ukraine war (since 2022), the Israel-Hamas war (since 2023), the Red Sea shipping crisis (2023-24), the semiconductor supply crunch, and now the high tariffs of the US.
From USD 276.5 billion in 2020, outbound shipments increased to USD 395.5 billion in 2021 and USD 453.3 billion in 2022. They dipped to USD 389.5 billion in 2023, but momentum picked up again, with exports rising to USD 443 billion in 2024. In 2025 (January-November) so far, they have reached USD 407 billion.
Commerce Secretary Rajesh Agrawal said India’s exports of goods and services reached a historic high of USD 825.25 billion in 2024-25, over 6 per cent year-on-year growth and this strong upward trajectory continues into the current fiscal year also (USD 562 billion during April-November 2025), which is a clear demonstration of resilience amid global headwinds.
“Based on current trends, India’s exports are poised to deliver solid growth in 2026 as well. Notably, three free trade agreements — UK, Oman, and New Zealand — will enter into force next year, unlocking enhanced market access for both goods and services........