India to Surpass $825 Billion Exports This Fiscal Amid Global Challenges, Says Goyal

11 June, 2025

Commerce Minister Piyush Goyal stated India's exports are set to surpass $825 billion this fiscal (2025-26), building on the record $825 billion achieved in 2024-25, despite global geopolitical challenges. He highlighted India's resilience and projected strong growth, supported by FTAs with UAE, Australia, and EFTA (effective October 1), with the latter committing $100 billion in investment. Key sectors like electronics, engineering, and pharma are expected to drive this export surge.

Unpacked:

What role do Free Trade Agreements (FTAs) play in boosting India's exports?

FTAs help boost India's exports by providing easier access to foreign markets, reducing tariffs, and increasing competitiveness of Indian goods. This leads to increased trade, investment, and economic growth, especially in sectors like textiles, IT, pharmaceuticals, and engineering.

Which countries are India's major export destinations and how might these FTAs affect trade flows?

The United States is India's largest export destination, accounting for over 17% of exports in 2022/23. Recent FTAs with countries like UAE, Australia, and EFTA are expected to diversify trade flows, open new markets, and enhance export potential in key sectors.

What challenges does India face in maximizing benefits from FTAs?

Challenges include managing trade deficits due to increased imports, protecting sensitive domestic industries from foreign competition, navigating complex negotiations, and overcoming regulatory and non-tariff barriers with partner countries.

How significant are the expected investments from EFTA, and what impact might they have on India's economy?

EFTA has committed $100 billion in investment, which is substantial and could significantly support India's economic growth, infrastructure, and technology sectors, further enhancing India’s export capacity and competitiveness globally.

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