India's 2026 Export Challenge: Diversification & FTAs Crucial Amid Global Headwinds

• RBI projects import growth to outpace exports by over five times in 2025-26, with modest export pickup in 2026-27.
• Global Trade Research Initiative (GTRI) warns 2026 will be tough due to weak demand, protectionism, and climate barriers.
• US tariffs (25% + 25% penalty) and EU's CBAM are significantly impacting Indian exports, especially steel.
• Services exports are a key buffer, projected to cross $400 billion in 2026, supporting overall outbound shipments.
• Diversification to new markets (China, UAE, Vietnam) and accelerated Free Trade Agreements (FTAs) are vital for export growth.

Why It Matters: Diversification and strategic FTAs are critical for India to navigate tough global trade and boost exports in 2026.