India’s Exports Show Fastest Growth in Three Years
India’s exports recorded their fastest growth in three years, defying concerns over higher tariffs imposed by the United States under President Donald Trump. Official data shows that outbound shipments grew strongly in recent months, driven by resilient demand from key markets, especially the US, and improved competitiveness of Indian goods.
Government officials said the performance indicates that Indian exporters were able to absorb tariff pressures and remain competitive through a combination of pricing adjustments, currency movements, and diversification of export products. Engineering goods, electronics, pharmaceuticals, and chemicals were among the sectors that showed notable improvement.
US Remains a Key Growth Driver
Despite the imposition of higher tariffs, the United States continued to be one of India’s largest and fastest-growing export destinations. Trade analysts noted that American buyers did not significantly cut back on Indian imports, suggesting limited pass-through of tariff costs to end consumers or effective renegotiation of supply contracts.
Officials also pointed out that India’s export growth outpaced global trade growth during the same period, underlining the relative strength of the domestic manufacturing and export ecosystem.
Currency and Policy Support Helped Exporters
A relatively weaker rupee during parts of the year improved export competitiveness by lowering dollar-denominated prices of Indian goods. In addition, government incentives, faster tax refunds, and logistics improvements helped exporters manage higher input and compliance costs.
Exporters’ bodies said supply chain diversification away from China also worked in India’s favour, as global companies increasingly looked for alternative sourcing destinations.
Outlook Remains Cautiously Positive
While exporters remain cautious about future trade tensions and global demand conditions, officials said the latest numbers demonstrate India’s ability to withstand external shocks. Policymakers indicated that continued focus on manufacturing, trade facilitation, and market access will be key to sustaining export momentum.
