India's Exports Face $1 Trillion Target Hurdle Amid Global Trade Headwinds in 2026

• India's ambitious $1 trillion export target for FY26 faces significant challenges from global protectionism and climate-linked trade curbs like the EU's CBAM.
• GTRI report predicts FY26 exports unlikely to exceed $850 billion, making the $1 trillion goal distant, despite potential services export growth.
• EU's Carbon Border Adjustment Mechanism (CBAM), effective January 1, 2026, has already caused a 24% decline in Indian steel exports to the EU.
• India is diversifying export destinations, but critical markets like the US and EU remain crucial, necessitating strategic engagement.
• Focus is on making existing 18 FTAs deliver results, improving product quality, reducing costs, and increasing value addition in key sectors.

Why It Matters: 2026 poses a major stress test for India's exports, requiring strategic focus to overcome global trade barriers.