News on export from India

India's exports are experiencing mixed trends with some sectors showing robust growth while others face challenges. Recent reports indicate a potential surge in exports to $1 trillion in FY26, driven by strong global demand and government initiatives to boost manufacturing and diversify markets. However, disruptions in global supply chains, geopolitical tensions, and trade policy changes are also impacting export performance in certain areas. Here's a more detailed look at recent developments: Positive Trends: Overall Export Growth: India's total exports of goods and services reached a record high of USD 825 billion in FY25, with services exports playing a significant role. Targeting New Markets: India is actively exploring new markets for products like basmati rice, with plans to boost exports to rice-producing nations like Vietnam, Indonesia, and the Philippines. FTA Benefits: Free Trade Agreements (FTAs) with the UAE and Australia are providing benefits to Indian exporters, and the India-UK FTA is expected to increase bilateral trade by nearly 15%. Sector-Specific Growth: Certain sectors like auto components, pharmaceuticals, and ready-made garments are witnessing positive growth, partly due to FTAs and government support. Government Focus on Manufacturing: The government is emphasizing local manufacturing to reduce reliance on imports and strengthen the export sector. Record Exports to the US: India has set a new record for monthly exports to the US, and bilateral goods trade has reached historic highs. Challenges and Concerns: Global Trade Uncertainties: Disruptions in global supply chains, geopolitical tensions, and potential trade barriers are posing challenges for Indian exporters. Rising Freight Costs: Events like the conflict between Iran and Israel, and India's ban on ships carrying Pakistani cargo, are increasing shipping costs and potentially impacting trade. Trade Deficit: While India's trade deficit narrowed in May due to lower imports and strong services exports, it remains a concern with some reports projecting a surge in the deficit in FY26. US Tariffs: Indian exporters are facing potential challenges due to US tariffs on steel and aluminum, and there are concerns about the impact of potential further tariffs on other products. Slowing Exports in Some Sectors: While overall exports are growing, some sectors like pharmaceuticals and engineering goods have experienced a slowdown. Slowdown in Basmati Exports: Indian exporters are concerned about a slowdown in basmati rice shipments and payment delays to Iran. Government Initiatives: Promoting Exports: The government is actively working to promote exports through various initiatives, including FTAs, support for manufacturing, and diversification of export markets. Addressing Trade Barriers: The government is also focused on addressing trade barriers and ensuring a favorable environment for exporters. Developing Rare Earth Magnet Production: India is planning to incentivize domestic production of rare earth magnets to reduce reliance on imports. Overall: India's export sector is at a crucial juncture, with both opportunities and challenges on the horizon. While the government is taking steps to boost exports and diversify markets, exporters need to navigate global uncertainties and trade barriers to achieve sustainable growth.