India's Export Surge: Forecasting a $1 Trillion Milestone

The Federation of Indian Export Organisations (FIEO) predicts that India's goods and services exports will soar above $1 trillion by 2025-26. Various sectors, including electronics and pharmaceuticals, are expected to drive this growth. Trade agreements and shifting sourcing patterns bolster these optimistic projections.

India is on track to achieve over $1 trillion in exports by 2025-26, according to projections by the Federation of Indian Export Organisations (FIEO). With global buyers diversifying their sourcing amid economic uncertainties, FIEO President S C Ralhan predicts healthy growth across major sectors.

Key trade agreements under finalization and the production-linked incentive scheme are poised to further fuel this momentum. Sectors like electronics, pharmaceuticals, and chemicals are expected to see significant gains, while exports from the machinery and apparel sectors remain robust.

However, potential challenges loom on the horizon, such as the EU's impending Digital Product Passport (DPP) requirements, which may increase compliance costs for exporters, particularly MSMEs. Despite these hurdles, India stands to benefit from trade diversion opportunities as global firms look beyond traditional sourcing countries.

(With inputs from agencies.)