India’s general items and companies exports are anticipated to develop by over 21 per cent year-on-year to $1 trillion throughout FY26 from $825 billion within the final fiscal, largely as a consequence of a leap in exports to the US, Federation of Indian Export Organisations (FIEO) President S C Ralhan stated on Tuesday.
Ralhan stated the wholesome development could outcome from worldwide consumers looking for to diversify their sourcing amid world financial uncertainties, aided by free commerce agreements that India is finalising.
Nevertheless, he added that regardless of the wholesome outlook, some headwinds are anticipated from technical and non-tariff limitations. The most recent problem going through the trade is the implementation of the Digital Product Passport (DPP), which shall be launched by the EU from 1 January 2026.
Will probably be obligatory for a variety of merchandise, beginning with sectors like electronics, batteries, textiles, and building supplies, with wider rollouts anticipated by 2030. DPP goals to digitally report, retailer, and share details about a product’s whole life cycle—from uncooked supplies to manufacturing, utilization, recycling, and disposal.
In FY26, merchandise exports are anticipated to develop 12 per cent to $525–535 billion from $437 billion in 2024–25, whereas companies exports are prone to rise by about 20 per cent year-on-year to $465–475 billion from $387 billion within the final fiscal, Ralhan stated.
All the most important sectors are anticipated to indicate a major leap in shipments this fiscal, he stated, including that wholesome development is anticipated in electronics, engineering, chemical substances, textiles and clothes, prescription drugs, and even agriculture. Petroleum and gems and jewelry exports may also be within the optimistic zone within the coming yr.
DPP could improve the compliance burden, significantly for exporters from the Micro, Small and Medium Enterprises (MSMEs) sector. “These are clearly protectionist measures,” Sahai stated.
Non-compliance with DPP necessities could result in rejection of consignments or lack of competitiveness within the EU market, which is turning into more and more sustainability-focused, Sahai stated.
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This DPP follows the EU’s carbon tax, deforestation laws, and the Eco Design Sustainable Product Regulation—all of which is able to come into pressure from 1 January 2026.
He additionally stated that points pertaining to the Pink Sea and the wars between Russia–Ukraine and Israel–Hamas have eased, and in reality, ships have began shifting by the Pink Sea.
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