Dr Vidhu Sekhar P, Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Govt of India. Daman Campus
Dr Pravin Chavan, Assistant Professor, National Institute of Fashion Technology, Ministry of Textiles, Govt of India. Kannur Campus
Introduction
Amid geopolitical fractures, supply chain disruptions, rising protectionism, and regional conflicts like the West Asia crisis, India’s trade performance stands out as a strong growth story, driven by strategic foresight, policy discipline, and economic resilience. It altogether paints a compelling and deeply encouraging portrait of a nation that is not merely surviving global headwinds, but actively charting its own course as a dominant force in world trade.
The global trade environment in 2025-26 is, by any measure, deeply challenging. The Iran conflict has disrupted West Asia’s maritime corridors, sending input costs surging across aluminium, chemicals, energy, leather, oil, rubber and steel. Freight volatility has rattled supply chains worldwide. Weak demand in key Western markets, rising protectionism, and geopolitical uncertainties have forced many emerging economies into defensive postures.
While peer economies stumbled, India’s total merchandise and services exports grew 5.26% to $714.73 billion in April–January FY26, and over the longer FY2021–25 period, achieved a robust CAGR of 6.9% — growing from $497.90 billion to $828.25 billion. This is the story of a nation that prepared deliberately, built smartly, and executed with conviction.
RoDTEP: The Policy Masterstroke Driving Export Growth
At the very heart of India’s export success lies the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme — a WTO-consistent, structurally sound mechanism that refunds embedded Central, State and local levies not covered under other duty exemption schemes. By ensuring that Indian exporters enter global markets without carrying the hidden burden of unrefunded taxes, RoDTEP levels the playing field against competing economies in a manner that is both fair and effective.
The results speak for themselves. Exports supported under RoDTEP have recorded a CAGR of over 20% between FY2023-24 and FY2025-26 — a figure that would be impressive in any global climate, let alone the turbulent one we are navigating today. Government budget allocations under the scheme have risen significantly from Rs 13,854 crore in 2022-23 to Rs 18,232 crore in 2025-26, reflecting the government’s total commitment to exporters.
In the global context, this is deeply significant. At a time when many nations are resorting to trade-distorting subsidies and protectionist measures that invite WTO disputes, India’s approach via RoDTEP is a model of responsible, rules-based export promotion that the international community should take note of and respect.
MSME Inclusion as a Global Differentiator
One of the most powerful and inspiring dimensions of India’s export story is its commitment to inclusivity. The rise in MSME participation under RoDTEP has risen from 68% in 2021-22 to approximately 75% in 2025-26. This is a clear global statement about the kind of trade-led growth India believes in. In many advanced economies, export ecosystems are dominated by large multinational corporations, leaving smaller enterprises to fend for themselves against cost pressures and margin compression. India has consciously chosen a different path. We have recognised the importance of small and medium enterprises as the strong backbone of export momentum. This inclusive model not only distributes the benefits of globalisation more equitably across Indian society, but also builds a far more resilient and diversified export base than one dependent on a handful of large players. For global trade policymakers and multilateral institutions like the WTO and UNCTAD, India’s MSME-first approach offers a replicable model for developing nations seeking to build sustainable, broad-based export competitiveness.
Trade Diplomacy @ 19 FTAs and Counting
India’s export resilience is also underpinned by an extraordinary burst of trade diplomacy that has reshaped the country’s global commercial relationships. With 19 Free Trade Agreements in place and eight major deals concluded or advanced since 2021. We had landmark agreements with the EU, EFTA, UK, Oman, and New Zealand and has demonstrated a rare combination of strategic ambition and diplomatic execution.
The India-EU FTA is particularly historic, offering access to almost the entire EU tariff universe and positioning India as a deeply integrated participant in global value chains. The India-EFTA Trade and Economic Partnership Agreement (TEPA) has a dedicated FDI commitment that signals a new maturity in India’s trade architecture, one that links market access with long-term investment flows.
In a world where multilateralism is fraying and bilateral deal-making is increasingly the norm, India’s proactive FTA strategy positions it as one of the most well-connected trading nations of the coming decade. For global businesses seeking supply chain diversification away from concentrated geographies, India is fast becoming the destination of choice and makes that choice structurally attractive.
Evolving Proactive Policy Ecosystem
Beyond RoDTEP and FTAs, India’s export resilience rests on a robust and evolving policy ecosystem. The Foreign Trade Policy 2023 has provided a flexible, adaptive framework capable of responding to rapid global shifts. The newly approved Export Promotion Mission (EPM) 2, backed by a substantial Rs 25,060 crore budgetary outlay for FY2025-26 through FY2030-31, signals a long-term commitment to sustaining and accelerating export momentum well into the next decade.
Perhaps the most noticed decision was the government’s swift launch of the RELIEF scheme that was designed to address elevated export risks arising from the West Asia conflict. It demonstrates an agility and responsiveness to real-world disruptions that many advanced economies struggle to match. Rather than waiting for the crisis to pass, India acted proactively to protect its exporters and maintain trade flows. This is statecraft of the highest order.
A stance justified, admirable, and deserves global attention
In a world where trade is increasingly weaponised, where supply chains are disrupted by conflict, and where protectionism is masquerading as national interest, India stands as a principled, proactive, and high-performing advocate for open, rules-based, inclusive trade.
The approach is offering the world a model of how emerging economies can compete confidently, grow sustainably, and engage globally without compromising on fairness or inclusivity. The policy combines WTO-consistent tools, MSME empowerment, strategic FTA diplomacy, adaptive trade frameworks, and proactive risk management. As the country marches toward the vision of becoming a $5 trillion economy and a leading global trading power, the evidence is clear, the strategy is sound, the execution is strengthening, and the momentum is building.
