India's Exports Set For Steady Growth In Coming Years, Even As Tariff Concerns Impact Global Trade: DGFT

Director General of Foreign Trade, Santosh Kumar Sarangi, emphasised the need for exporters to adopt a strategic and pragmatic approach to navigate the evolving trade landscape.

The statement comes as the US, under President Donald Trump, goes ahead with its new policy on reciprocal tariffs.

Source : Freepik

India's exports are expected to witness steady growth in the coming years, even amid uncertainties in global trade and tariff policies, according to a senior government official.

Director General of Foreign Trade, Santosh Kumar Sarangi, emphasised the need for exporters to adopt a strategic and pragmatic approach to navigate the evolving trade landscape, reported PTI.

Sarangi, speaking at the Sourcex India 2025 show organised by the Federation of Indian Export Organisations (FIEO), highlighted that the current global trade scenario presents a significant opportunity for India to strengthen its export sector and enhance manufacturing competitiveness.

“Despite the uncertainties relating to trade and tariff, our exports are bound to grow in future years,” the official said.

Impact of US Tariffs and Exporters’ Concerns

The statement comes as the US, under President Donald Trump, goes ahead with its new policy on reciprocal tariffs. Notably, the US imposed reciprocal tariffs on countries like China and is set to extend similar duties to India from April 2.

Certain exporters have voiced concerns that these duties could adversely affect shipments in key sectors like engineering and pharmaceuticals. The United States remains India's largest trading partner, making any tariff adjustments particularly significant for Indian exporters.

Despite these concerns, Sarangi expressed confidence in India's export trajectory. He projected that the country’s goods and services exports will surpass $800 billion in the current fiscal year, compared to $778 billion in the previous year. “While we see a temporary blip in exports (in the recent) months, in the longer run, our exporting communities have been giving us an impression that the number of order enquiries which they are receiving is fairly positive, and that gives me the confidence that our exports will increase vis-a-vis our current levels,” he said.

Policy Support and Export Performance Trends

India’s trade sector has been facing challenges, with goods exports declining for the fourth consecutive month. In February, exports fell by 10.85 percent to $36.91 billion. For the April-February period of this fiscal, goods exports totalled $395.63 billion, while services exports were estimated at $354.90 billion.

Sarangi credited government initiatives such as the production-linked incentive (PLI) scheme and measures for improving the ease of doing business and supporting domestic manufacturers and exporters.

Meanwhile, FIEO Director General Ajay Sahai echoed similar optimism, stating that India’s export sector is poised for healthy growth. “The order books are pretty good, and the removal of tariff uncertainties will further push the shipments,” Sahai said.