India’s merchandise exports have shown remarkable resilience in 2025 despite facing steep 50% tariffs imposed by the United States. Exporters have adapted by diversifying markets and products, ensuring that growth momentum is likely to continue into 2026. Experts highlight that India’s trade strategy has successfully navigated multiple global disruptions over recent years, including the Covid-19 pandemic, the Russia-Ukraine conflict, geopolitical tensions in the Middle East, shipping crises, and semiconductor shortages.
From USD 276.5 billion in 2020, outbound shipments surged to USD 395.5 billion in 2021 and USD 453.3 billion in 2022. Although exports dipped to USD 389.5 billion in 2023, they recovered to USD 443 billion in 2024. By November 2025, shipments had already reached USD 407 billion. Commerce Secretary Rajesh Agrawal noted that goods and services exports touched a historic USD 825.25 billion in 2024-25, reflecting over 6 percent year-on-year growth. The government anticipates continued growth in 2026, supported by three new free trade agreements with the UK, Oman, and New Zealand, which are expected to unlock further market access.
Despite the tariffs temporarily slowing shipments to the US in September and October 2025, exports rebounded strongly, surging 22.6 percent to USD 6.98 billion in November. Policy measures including a Rs 25,060 crore export promotion mission, extended collateral-free credit of Rs 20,000 crore, debt repayment moratoriums, and new trade agreements have helped buffer exporters against external shocks.
Sectoral growth has been led by electronics, which jumped nearly 39 percent in November, while engineering goods, pharmaceuticals, and automotive exports continue to drive overall performance. Geographic diversification is also evident, with strong growth in markets including Spain, China, and Bangladesh, alongside traditional partners such as the US and UAE.
Experts caution that challenges remain, including rising protectionism, exchange-rate volatility, higher freight costs, and geopolitical uncertainties. Nevertheless, the combination of policy support, trade diversification, and domestic competitiveness positions Indian exporters for a stable and positive trajectory into 2026.
