India’s goods and services exports are projected to reach $840–850 billion in FY26 and could rise further to around $950 billion in FY27, driven largely by new free trade agreements (FTAs) with West Asian countries and strong performance in technology-led sectors, industry experts said.
Exporters highlighted that sectors such as electronics, information technology, pharmaceuticals, and engineering goods are likely to remain key contributors, while services exports, particularly in IT and software, continue to show robust growth. “The strategic FTAs with countries in West Asia are expected to provide a significant boost by improving market access, reducing tariffs, and opening new avenues for Indian businesses,” said a senior industry official.
However, they cautioned that rising tariff barriers and climate-linked trade restrictions could pose significant challenges to sustaining growth. Increasing global protectionism, evolving environmental regulations, and stringent carbon compliance norms are expected to require exporters to adopt more resilient and sustainable business practices.
The government has been actively pursuing diversified trade agreements to mitigate dependence on traditional markets. In addition to West Asia, partnerships with Southeast Asian countries, Africa, and Europe are also expected to provide momentum to India’s trade growth.
Analysts noted that while the $950 billion target for FY27 is ambitious, it is achievable if Indian exporters capitalize on technology-driven competitiveness, leverage favorable trade pacts, and adapt to the changing global trade environment.
India’s export trajectory reflects a broader strategy to position the country as a global manufacturing and services hub, boosting foreign exchange earnings and supporting domestic economic growth.