Sustaining export cheer needs FTA support

The fact that China has displaced the Netherlands as India’s third-largest export destination suggests nimble diversification by Indian exporters

India’s merchandise exports in November 2025 were the highest in at least a decade. A healthy annualised growth rate of 19.38% for the month indicates resilience despite punishing tariffs imposed by the Donald Trump administration, given the US remains India’s top export destination. Beyond the role a softer rupee could have played, some experts believe that rising US-bound shipment of products that were spared the high Trump tariffs have also contributed to the export performance.

Beyond the role a softer rupee could have played, some experts believe that rising US-bound shipment of products that were spared the high Trump tariffs have also contributed to the export performance. (REUTERS)

The fact that China has displaced the Netherlands as India’s third-largest export destination suggests nimble diversification by Indian exporters, who may have tapped alternative markets or trans-shipment hubs for the tariff-hit segments. This pivot has been reported for segments such as marine products. And any capacity to absorb the tariffs in shipments to the US would also suggest underlying strength in the segments affected, irrespective of how long the levies stay.

That said, safety nets are still needed. Trade has been weaponised by the US, and that sets a precedent for other nations to push their interests. With global trade governance now rendered toothless, India will need to actively protect its trade interests. Apart from domestic export promotion schemes, India’s efforts to secure its trade interests with various economies, including the US, through free trade agreements (FTAs) will be central to maintaining healthy export growth. Concerted efforts at further diversification of markets is also an imperative, given Trump’s US could remain a source of uncertainty.

Resilience needs both protection and reinforcement.