Economic Survey 2026: India's External Sector Strong, Urges Export Competitiveness

• Economic Survey 2025-26 highlights India's strong external sector due to global integration, resilient services trade, and expanding trade networks.
• The survey emphasizes the need for a strong export-oriented policy to achieve robust export growth and maintain currency stability.
• Current Account Deficit (CAD) narrowed to 0.6 percent in FY25 and stood at 1.3 percent of GDP in the September quarter, expected to remain contained.
• Services exports reached $304 billion in the first nine months, a 7 percent increase, and remittances were 10.7 percent higher year-on-year.
• India's diversification strategy, including trade agreements with UK, New Zealand, Oman, EU, and EFTA, aims to mitigate impact of US tariffs.

Why It Matters: India's external sector is robust, but sustained growth requires enhanced export competitiveness and strategic trade diversification.