GTRI: India's Exports to Hit $850 Billion by FY26 Amidst Global Headwinds

• India's goods and services exports are projected to grow by 3% to USD 850 billion in 2025-26, according to think tank GTRI.
• The current fiscal year (2024-25) saw overall exports reach USD 825 billion, comprising USD 438 billion in merchandise and USD 387 billion in services.
• GTRI warns of a tougher global trade environment in 2026 due to rising protectionism, weakening demand, and new climate-linked trade barriers.
• The EU's Carbon Border Adjustment Mechanism (CBAM), effective January 1, 2026, has already reduced India's steel exports to the EU by 24%.
• GTRI suggests the government urgently review Free Trade Agreements (FTAs) to ensure they are effectively expanding exports and integrating Indian firms into global value chains.

Why It Matters: India aims for $850B exports by FY26, but faces significant global trade challenges like protectionism and CBAM.