Exports

India’s apparel exports recorded a modest 1.6 percent growth during April–January 2025-26, reflecting resilience in the face of persistent global headwinds and supply chain disruptions. According to industry leadership, shipments to key international markets such as Italy, the United Kingdom, the United Arab Emirates, Saudi Arabia, Germany, and Spain posted encouraging gains. Emerging demand from Japan, Iceland, and Australia further supported export momentum.

India’s pharmaceutical export sector is regaining momentum, with industry leaders expressing confidence in achieving double-digit growth in the near term. Strengthening global demand, a shift toward higher-value formulations, and improved supply-chain stability have lifted overseas shipments after a period of moderation. Exporters are increasingly focusing on complex generics, specialty drugs, and regulated markets to drive sustainable value growth rather than relying solely on volumes.

India’s oilmeal exports declined sharply by 42% in January compared to the same period last year, reflecting subdued global demand and intensified competition from key producing nations. The contraction underscores ongoing volatility in agricultural commodity markets, driven by fluctuating feed demand, currency movements and shifting trade policies. Exporters face margin pressure as international buyers recalibrate procurement strategies.

India’s rice exporters are set to benefit significantly following the recent reduction of US import tariffs on Indian rice, creating new opportunities for market expansion and revenue growth. The cut has made Indian rice more competitive in the United States, the world’s second-largest rice importer, by lowering landed costs and enhancing profit margins for exporters. Analysts predict this move will bolster shipments of basmati and non-basmati varieties, support rural farmers, and strengthen India’s position in the global rice market.

India’s exports to the United States are expected to see substantial growth in the coming years, according to Finance Minister Nirmala Sitharaman. Speaking at a recent trade and investment forum, she highlighted India’s expanding manufacturing capabilities, strategic trade partnerships, and rising competitiveness in sectors such as pharmaceuticals, IT services, textiles, and engineering goods.

India’s steel sector is poised for growth as preferential trade treatment from the European Union presents new export opportunities. With global demand for steel stabilizing after recent volatility, Indian producers are leveraging competitive production costs and high-quality output to expand market share in Europe. Industry stakeholders anticipate that reduced tariffs and streamlined customs procedures could enhance profitability, increase export volumes, and strengthen India’s position as a reliable steel supplier.

India’s export performance returned to positive territory in January, reflecting improving global demand and stronger competitiveness across key sectors, according to Commerce and Industry Minister Piyush Goyal. The rebound comes after months of uneven trade conditions driven by global inflation, geopolitical tensions, and slowing growth in major economies. Officials highlighted resilience in engineering goods, pharmaceuticals, electronics, and services exports, supported by policy reforms and diversification of markets.

India’s merchandise exports rose to USD 38.5 billion in December, signaling a gradual recovery in external trade amid a challenging global environment. The improvement reflects better performance across select manufacturing and engineering segments, supported by stabilizing global demand and improved supply-chain conditions. Trade experts note that while geopolitical uncertainties and uneven growth in major economies continue to pose risks, India’s diversified export base is providing resilience.

India’s automotive and metal export sectors are facing renewed pressure after Mexico imposed higher tariffs on key imported goods, a move rooted in the country’s evolving trade strategy and efforts to protect its domestic manufacturing base. The revised tariff structure affects several categories where India has traditionally maintained strong export momentum, including automobiles, auto components, steel, and aluminum products. As exporters analyze the financial implications, the sector is bracing for potential cost escalations, reduced margins, and a possible shift in trade flows.

Sber, Russia’s largest lender, has unveiled a rupee-denominated letter of credit designed to streamline payments for Indian suppliers exporting goods to Russian buyers. The new facility enables Indian exporters to receive prompt payment in Indian rupees once shipping documents are submitted, while Russian importers are granted deferred-payment terms that ease their cash-flow cycles. By reducing foreign-exchange exposure and providing a stable settlement framework, the initiative is expected to strengthen trade confidence and broaden commercial ties between the two countries.