Overview

• FIEO forecasts merchandise exports rising to $525 billion–$535 billion and services exports climbing to $465 billion–$475 billion in FY2025-26
• Key sectors such as electrical and electronics ($60 billion), petroleum products ($70 billion) and agriculture ($55 billion) are projected to lead export growth, supported by machinery, chemicals and pharmaceuticals
• Negotiators aim to finalise an India-US Bilateral Trade Agreement as early as next month, with the prospect of zero-tariff provisions set to boost competitive access to American markets
• Lower US tariffs on Indian auto components compared with China and a general easing of US-China trade tensions are already drawing new orders to Indian exporters
• Recent government initiatives, including RoDTEP benefits, the forthcoming Interest Subvention Scheme and the Production-Linked Incentive programme, have eased cost and credit constraints, while FIEO has urged for sector-specific task forces and digital infrastructure to streamline export compliance