India's 2026 Export Growth: Diversification & FTAs Key Amid Global Headwinds

• India's 2026 trade outlook is mixed, with import growth projected to significantly outpace export growth in 2025-26.
• Merchandise exports are expected to grow modestly by 4.1% in 2026-27, while global trade faces challenges like weak demand, protectionism, and new climate barriers.
• Services exports are a bright spot, projected to exceed $400 billion in 2026, potentially boosting overall outbound shipments to $850 billion in FY26.
• Trade relations with the US and EU are critical; US exports declined 21% (May-Nov) due to tariffs, and EU's CBAM is impacting steel exports (down 24%).
• Ongoing discussions for trade deals with the EU and US are vital for future export growth.

Why It Matters: India's 2026 export growth hinges on diversification, FTAs, and overcoming significant global trade challenges.