India's Exports Eye $850 Billion Amidst Global Trade Headwinds & EU Carbon Tax

• India's exports are projected to reach $850 billion in FY2025-26, a 3% increase from $825 billion in FY2024-25, despite global challenges.
• GTRI warns of the toughest global trade environment in 2026, citing rising protectionism, declining demand, and new climate-related barriers.
• Services exports are expected to exceed $400 billion, driving overall growth, while goods exports may remain stable due to weak demand and US tariffs.
• European Union's Carbon Border Adjustment Mechanism (CBAM), effective Jan 1, 2026, will impose a carbon tax on imports, impacting Indian exports.
• CBAM is a major hurdle for India-EU FTA negotiations; GTRI advises reviewing existing FTAs for effectiveness.

Why It Matters: India aims for $850 billion exports by FY2026, navigating tough global trade, US tariffs, and EU's new carbon tax.