India Strengthens Export Ecosystem amid Global Trade Uncertainty

  • Articles
  • Mar 25,26
India’s exports continue steady growth, supported by policy reforms, digital trade systems, and targeted schemes, reinforcing competitiveness and expanding global market access.
India Strengthens Export Ecosystem amid Global Trade Uncertainty

India’s trade performance has remained robust, with exports showing steady growth in FY 2025–26 (Apr–Jan) and over the longer term (FY 2021–25). Despite global uncertainty, supply chain disruptions, and volatile commodity prices, exports have expanded in a broad-based manner.

During Apr–Jan of FY 2025–26, total exports of merchandise and services increased by $ 36 billion, growing 5.26 per cent from $ 679.02 billion in FY 2024–25 (Apr–Jan) to $ 714.73 billion. Between 2021–22 and 2024–25, exports recorded a compound annual growth rate of 6.9 per cent, rising from $ 497.90 billion in 2020–21 to $ 828.25 billion in 2024–25. This growth highlights India’s ability to sustain diversified and resilient export expansion under challenging external conditions.

The Government continues to strengthen exports and expand India’s global footprint by combining traditional strengths with emerging technology-driven sectors. A key focus is building a supportive ecosystem where exporters, particularly MSMEs, can compete effectively in global markets. This approach is supported by a dynamic policy framework, financial incentives, digital infrastructure, improved trade facilitation, and efforts to secure deeper market access through next-generation trade agreements.

The Foreign Trade Policy (FTP) 2023 serves as a flexible framework aligned to global shifts. Built on four pillars—trade facilitation, export promotion, state-level partnerships, and digital integration—it is reinforced by targeted export promotion schemes that enhance competitiveness.

The RoDTEP scheme plays a central role by neutralising embedded taxes on exports, ensuring global competitiveness. The Export Promotion Mission (EPM) further strengthens this through two pillars: improving access to affordable trade finance and upgrading quality, logistics, branding, and market readiness. The Government has approved an outlay of Rs 250.6 billion for FY 2025–26 to FY 2030–31. The mission operates through Niryat Protsahan, focusing on trade finance and credit enhancement, and Niryat Disha, focusing on logistics, warehousing, and market access, with a specific emphasis on MSMEs.

A time-limited “RELIEF” scheme has also been notified under the Export Promotion Mission. Implemented through the Export Credit Guarantee Corporation of India (ECGC), it addresses elevated export risks arising from geopolitical disruptions in the Gulf and West Asia maritime corridor.

ECGC continues to provide critical risk-mitigation support, while schemes such as Trade Infrastructure for Export Scheme (TIES) strengthen export-linked infrastructure across the country.

Parallel to these policy and financial measures is India’s shift towards technology-enabled trade governance. Digital platforms such as the 24×7 EIC interface, Trade Intelligence & Analytics platform, Common Digital Platform for Certificates of Origin, and the Trade e-Connect portal have streamlined exporter access to information, approvals, and global markets. These systems enable online processing, real-time compliance updates, digital certification, faster turnaround times, and improved access to market intelligence, creating a transparent and efficient trade ecosystem.

Proactive trade diplomacy further strengthens market access. India currently has 19 FTAs and has concluded or advanced eight major agreements since 2021. The India–EU FTA, offering access to most of the EU tariff universe, is a key step in integrating India into global value chains. The India–EFTA Trade and Economic Partnership Agreement (TEPA) includes a commitment to increase FDI inflows. Agreements with New Zealand, Oman, and the UK are expected to enhance market access, services mobility, and investment flows. Ongoing negotiations with Israel, Canada, GCC nations, Chile, and Peru reflect efforts to expand high-value trade corridors.

India’s export strategy reflects a whole-of-government approach focused on building a resilient and future-ready ecosystem. By integrating financial incentives, digital trade facilitation, institutional reforms, and market access initiatives, the country is strengthening exporter capabilities and positioning itself as a trusted, technology-driven partner in global trade.

SME's Perspective

For MSMEs, the evolving export ecosystem presents a strong growth runway, but execution will be key. While schemes like RoDTEP, EPM and digital trade platforms improve competitiveness and access, smaller exporters must actively upgrade quality standards, adopt digital tools, and strengthen supply chain reliability to fully benefit. The real opportunity lies in leveraging FTAs and technology-led trade facilitation to move up the value chain—from low-cost suppliers to specialised, globally competitive manufacturers.

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