Media365
India’s merchandise exports have defied one of the most turbulent global trading environments in years, rising 15 per cent so far in FY27 despite disruptions in the Red Sea, uncertainty around the Strait of Hormuz and heightened geopolitical tensions, Commerce and Industry Minister Piyush Goyal said.
Speaking at Assocham’s JRD Tata Memorial Lecture in New Delhi, Goyal said India’s exporters have remained resilient despite mounting global headwinds, reflecting the strength of the country’s economic fundamentals at a time when businesses worldwide are grappling with higher shipping costs, volatile energy prices and trade uncertainty.
“As we speak, merchandise exports have grown 15 per cent so far in the year,” Goyal said, expressing confidence that the momentum would continue as India’s recently concluded and proposed free trade agreements (FTAs) expand market access for domestic exporters.
India’s merchandise exports stood at $148.58 billion during the April-July period of the previous financial year. A 15 per cent increase would take outbound shipments to more than $170 billion during the corresponding period this year.
The minister said the first few months of FY27 have been marked by persistent global challenges, including volatility in crude oil, petrol, diesel and natural gas prices, uncertainty surrounding the Strait of Hormuz and continuing attacks on commercial shipping in the Red Sea. Despite these headwinds, he said, India’s export sector has continued to grow.
FTAs to support export momentum
Goyal said India’s trade agreements with the United Kingdom and Oman would provide an additional boost to exports by improving market access for Indian businesses. He added that the legal scrubbing of the India-European Union trade agreement was nearing completion and the pact was expected to come into force in the first quarter of next year.
The minister said these agreements would help Indian exporters diversify beyond traditional markets and strengthen the country’s position in global supply chains at a time when companies are increasingly looking to reduce concentration risks.
India-US trade pact hinges on competitive access
On the proposed bilateral trade agreement (BTA) with the United States, Goyal reiterated that India would operationalise the first tranche only after securing a competitive advantage over rival exporting nations.
“I have very categorically, and on several occasions, stressed the confidence that what we have finalised with the US as the first tranche of the BTA, which was announced by our leaders in February, will come into operation as soon as the US is able to ensure that we get comparative advantage over our competitors like countries in our neighbourhood and the Asean region,” he said.
India and the United States are continuing negotiations on the trade pact, which both sides hope will deepen bilateral economic ties while addressing market access concerns.
US tariff actions remain a concern
The minister’s remarks come as the United States steps up trade scrutiny of India.
The US Senate has advanced bipartisan legislation that could authorise President Donald Trump to impose tariffs of up to 100 per cent on countries importing Russian oil, including India. Asked about the proposed legislation, Goyal declined to comment on its prospects.
“We don’t speculate,” he told reporters.
Separately, the Office of the US Trade Representative (USTR) has launched two investigations against India under Section 301 of the US Trade Act, 1974. Washington has already imposed a 10 per cent tariff on certain Indian goods under one investigation related to forced labour imports, while another probe into excess industrial capacity remains under discussion.
“We have participated in the Section 301 process. They have imposed tariffs under one investigation, and the other is under discussion,” Goyal said.
He maintained that India’s export competitiveness would remain intact despite the additional tariffs.
“As long as we have a comparative advantage, India will continue to grow its exports and leverage the large US market,” he said.
Fastest-growing major economy
Highlighting India’s broader economic performance, Goyal said the country remained the world’s fastest-growing major economy, recording 7.7 per cent GDP growth in the previous financial year despite an uncertain global environment.
He said India’s export resilience demonstrated the strength of its manufacturing base, policy reforms and growing integration with global value chains, adding that the government remained focused on expanding overseas market access and strengthening India’s position as a reliable trading partner.
