India’s Exports Under Pressure – Can the Economy Keep Up?

• Indian exports are facing challenges due to US and EU trade policies.
• The US plans to impose reciprocal tariffs, affecting key industries like autos and agriculture.
• India aims for $2 trillion in exports by 2030, but achieving this goal seems difficult.

Is India’s Export Growth in Trouble?

India’s export industry is feeling the heat from changing global trade policies. The United States and the European Union have introduced new measures that could hurt Indian businesses. The US is raising import tariffs and implementing trade restrictions, while the EU’s carbon tax is adding to the difficulties.

According to Santosh Sarangi, head of the Directorate General of Foreign Trade (DGFT), these developments mean India must rethink its trade and industrial strategies. The situation is particularly worrying as US President Trump plans to introduce reciprocal tariffs from April, which could cost Indian exporters around $7 billion annually.

What’s India Doing to Handle This?

To address the crisis, India’s trade minister Piyush Goyal is currently in the US, attempting to negotiate better trade terms before these tariff changes take effect. However, India also faces internal challenges, such as high import tariffs on raw materials and limited participation in global supply chains.

Despite recent export growth, India still struggles with a trade deficit. Between April 2024 and January 2025, total exports reached $682.59 billion, while imports hit $770 billion, leaving a trade gap of $87.47 billion.

Can India Overcome These Challenges?

India has set an ambitious target of $2 trillion in exports by 2030, but experts say this will be difficult. To reach this goal, India must grow exports by 14.4% annually—almost three times faster than the 5.2% yearly growth rate seen in the past decade.

The government may need to focus on boosting export competitiveness, improving trade agreements, and diversifying its markets. If India can adapt to the shifting global trade landscape, it may still have a chance to strengthen its position in the world economy.