India's Trade Navigates US Tariffs, Global Turmoil; Record Exports & Diversification Drive

• India's FY25 exports hit a record $825.25 billion, growing 6.05% despite global geopolitical conflicts and supply chain disruptions.
• US President Donald Trump imposed escalating tariffs on Indian goods, reaching 50% after accusations regarding Russian oil imports, prompting strong rebuttal from New Delhi.
• Negotiations for a bilateral US trade deal remain complex and slow, with no definitive breakthrough despite multiple rounds of talks.
• India actively diversified trade, signing FTAs with EFTA, concluding CEPA with Oman, and negotiating with UK, New Zealand, EU, and others.
• Government support measures, including ECGC upgrades, a weaker rupee, and GST rationalization, helped cushion the impact of global uncertainties and tariffs.

Why It Matters: India achieved record exports in 2025 amidst US tariff shocks and global turmoil, driven by strategic market diversification.