India's Exports Thrive, But US Tariffs Cast 2026 Shadow on Key Sectors

• India's exports demonstrate resilience, with strong growth in November and overall for April-November, despite existing US tariffs.
• Industry leaders, including Sivaramakrishnan Ganapathi of Gokaldas Exports, warn of a potential "inflection point" in 2026 if US tariffs persist, particularly for labor-intensive sectors like apparel and textiles.
• Indian exporters face a significant 30% tariff disadvantage in the US market compared to other Asian competitors, with the US accounting for over a third of India's apparel exports.
• Current export momentum is partly sustained by Indian suppliers and global buyers absorbing cost pressures, a model deemed unsustainable in the medium term.
• Ajay Sahai of FIEO highlights diversification to West Asia, Africa, Latin America, and ASEAN, along with growth in engineering and pharma, as key drivers of overall export resilience, but acknowledges diversification from US is challenging.

Why It Matters: India's exports are strong now, but persistent US tariffs pose a significant, unsustainable risk by 2026.