India Targets $1 Trillion in Exports as Government Unveils Fresh Trade Push

• Goods exports projected to rise 16–17%; services exports 10–11%.

• Merchandise exports could reach $515 billion; services about $470 billion.

• Focus sectors include sustainable and technical textiles.

• 80 FTA outreach programmes conducted to boost utilisation.

• Export credit down nearly 14%, raising concerns among MSMEs.

India is preparing for a strong expansion in overseas trade this financial year, with the government projecting double-digit growth across both merchandise and services exports.

Commerce and Industry Minister Piyush Goyal said the country’s goods exports are likely to grow between 16% and 17% during the current fiscal year, while services exports may expand by 10% to 11%. The projections were shared after a meeting of the Board of Trade (BoT), the government’s top advisory body on trade policy.

If these growth estimates materialise, India’s merchandise exports could climb to roughly $515 billion in FY27, while services exports may approach $470 billion. Combined, that would bring total outbound shipments close to the government’s ambitious $1 trillion export target for the year—an objective that featured prominently in the Board’s discussions.

The BoT meeting brought together senior officials, export promotion councils and industry associations from across the country. The previous meeting of the board was held in November 2025.

New Focus Areas Identified

To drive export growth, the government has pinpointed several emerging sectors. These include sustainable textiles, technical textiles, performance wear and medical textiles—segments seen as offering significant global demand potential.

Officials also presented state-level production blueprints aimed at aligning export promotion strategies with each region’s manufacturing strengths. The idea is to create more focused, geographically tailored export strategies rather than a uniform national approach.

Making Better Use of Trade Agreements

A significant portion of the discussions centered on improving the use of India’s free trade agreements (FTAs). With at least two new FTAs expected to be implemented this year, policymakers are keen to ensure exporters take full advantage of tariff concessions and market access benefits.

The government introduced a five-point framework designed to enhance FTA utilisation. The approach includes expanding shipments in product categories where India already commands a strong global presence and enjoys fresh tariff benefits. It also calls for diversifying exports into areas where preferential tariffs can help capture additional market share.

Another key component of the strategy involves addressing non-tariff barriers and supply-side challenges in products that already face zero tariffs. The framework also seeks to identify new product opportunities based on demand trends in partner countries while gradually shifting away from items with limited long-term prospects.

To support smaller businesses, the plan emphasises structured assistance for micro, small and medium enterprises (MSMEs). This includes trained facilitators, outreach initiatives and guidance on navigating rules of origin, compliance obligations and market access conditions.

The Directorate General of Foreign Trade (DGFT) has already conducted around 80 outreach programmes related to FTAs and is preparing a structured training calendar through its regional offices and export promotion bodies to further improve awareness and usage.

Logistics and Freight Concerns Persist

The Board also reviewed trade flows through the Strait of Hormuz following last month’s ceasefire between the United States and Iran. Officials indicated that shipping movements are gradually returning to normal, with exports of rice and other perishable goods resuming.

However, exporters highlighted ongoing challenges tied to elevated logistics costs. Industry representatives pointed to high ocean freight rates, shortages of containers and vessel space, and multiple charges imposed by shipping lines. They recommended the creation of a dedicated institutional mechanism to track freight disruptions and improve cost transparency.

Export Credit Under Strain

Financing constraints emerged as another major concern. Industry bodies argued that achieving the $1 trillion export ambition would require improved access to affordable credit, lower logistics expenses and assistance in meeting increasingly stringent sustainability standards in global markets.

The Federation of Indian Export Organisations (FIEO) noted that export credit has contracted by nearly 14% in recent months. This decline, exporters said, has made it harder to fulfil orders, especially at a time when payment cycles are lengthening and freight costs remain elevated.

Industry leaders have urged the government to restore priority sector lending status for export credit to ease financial pressure, particularly for MSMEs that depend heavily on institutional funding.

FIEO also proposed the creation of a national-level green transition fund to support exporters in complying with evolving environmental regulations, including the European Union’s Carbon Border Adjustment Mechanism (CBAM). Such a fund could provide financial assistance, technological upgrades and expertise in carbon accounting and environmental compliance.

The Road Ahead

India’s export outlook appears optimistic, backed by sector-specific strategies and stronger FTA engagement. Yet structural issues—ranging from logistics bottlenecks to credit availability and sustainability compliance—will need careful attention.

As policymakers push toward the $1 trillion milestone, the coming months will test whether coordinated reforms, improved trade facilitation and financial support can translate ambitious projections into tangible export gains.