2026 looms as stress test for India’s exports amid protectionism and climate-linked trade curbs

India faces trade uncertainty in 2026, with stagnant merchandise exports and challenges from US tariffs and EU's CBAM, making the $1 trillion export target unlikely. Indian exporters are diversifying markets, but the US and EU remain critical; FTAs with major economies are in progress, aiming to boost exports and global integration. Improving product quality, value addition, and regulatory reforms are essential for India to remain export-competitive amid global disruptions.