India’s exports have shown strong post-pandemic growth, reflecting its emergence as a resilient economy. The Economic Survey 2025-26 described India’s growth as “the envy of the world”, citing the country’s strong banking system, ample foreign reserves, and stable current account. This momentum is supported by targeted import substitution and strategic measures that integrate India into global value chains.

Key Facts About India’s Export Performance

Overall Export Performance

Between April 2025 and January 2026, India’s total exports (goods and services combined) reached approximately USD 720.76 billion, marking a 6.15% growth compared to the previous year despite global uncertainties.

Export Diversification

India ranks among the top five countries globally for product diversity and top three for trade partner diversity, which helps the country withstand global demand fluctuations and supply chain disruptions.

Sectoral Performance

• Petroleum Products: India is the 7th-largest exporter of refined petroleum products and among the top five refining nations worldwide.

• Electronics: Electronics exports rose to become India’s third-largest export category, with smartphone exports reaching Rs 1 lakh crore, a 55% increase from the previous year.

• Pharmaceuticals and Chemicals: India ranks 11th globally in pharmaceutical exports, holding a 3% share of the global market. Exports of medical devices grew from USD 2.5 billion in FY21 to USD 4.1 billion in FY25.

• Textiles and Apparel: India is the 6th-largest global exporter, with exports increasing from USD 35.87 billion (FY24) to USD 37.75 billion (FY25).

• Automobiles: Vehicle exports increased from 4,131 thousand units (FY21) to 5,357 thousand units (FY25).

• Defence Exports: Defence exports reached a record Rs 23,622 crore in FY24-25, up from less than Rs 1,000 crore in 2014. Indian defence products are now exported to over 100 countries, with a target of Rs 50,000 crore by 2029.

• Services Exports: India’s services exports hit a record USD 387.5 billion, resulting in a trade surplus of USD 188.8 billion.

Trade Partners and Agreements

India has signed 9 Free Trade Agreements (FTAs) in the last three years, covering 38 countries. These agreements provide zero-duty access to markets representing approximately 70% of global GDP, helping India diversify trade partners and reduce dependence on a single market.

Steps Taken to Boost Exports

Production-Linked Incentives (PLI)

• Automobile and Auto Components: Encourages high-value advanced automotive technologies, attracting Rs 35,657 crore in investments.

• Bulk Drugs: Reduces reliance on imported Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs), creating an annual capacity of 55,000 MT for 26 critical products.

Export Promotion Mission (EPM)

The EPM, with an outlay of Rs 25,060 crore (FY25-26 to FY30-31), aims to strengthen the export ecosystem. It has two sub-schemes: Niryat Protsahan and Niryat Disha, providing:

• E-Commerce Credit Assistance: Up to Rs 50 lakh (domestic) and Rs 5 crore (overseas).

• TRACE: Reimburses 60–75% of compliance costs.

• FLOW and LIFT: Support for overseas warehousing and freight costs.

• INSIGHT: Funding for trade intelligence and capacity-building.

Semiconductor and Electronics Initiatives

• Electronics Component Manufacturing Scheme (ECMS): Rs 40,000 crore to integrate India into global electronics value chains.

• India Semiconductor Mission 2.0: Focuses on research, technology development, and workforce creation in semiconductor fabrication, assembly, and design.

Sector-Specific Export Promotion

• Electric Vehicles: PM E-DRIVE and SMEC schemes provide incentives for manufacturing electric two-wheelers, three-wheelers, trucks, and passenger cars for domestic and export markets.

• Defence Sector: Policies such as DAP 2020 and DPM 2025, along with industrial corridors in UP and Tamil Nadu, have attracted over Rs 9,145 crore in investments.

• Infrastructure and Ecosystem Development: Initiatives include Rare Earth Corridors, Chemical Parks, and Biopharma SHAKTI.

Services Export Promotion

Services exports are bolstered by Global Capability Centres (GCCs), SEZ incentives, and India’s high AI skill penetration, which supports digital services exports.

Challenges Facing India’s Export Sector

High Tariffs and Protectionism

• US tariffs of up to 50% in 2025 led to a 22% decline in exports to the US.

• Although an interim trade deal in February 2026 reduced tariffs to 18%, protectionist measures remain a concern.

Non-Tariff and Climate Barriers

• Small and medium exporters face complex Rules of Origin, high documentation costs, and compliance risks.

• The EU Carbon Border Adjustment Mechanism (CBAM), effective 2026, imposes carbon taxes on steel, aluminium, and cement, increasing costs for Indian exporters.

Diversification and Supply Chain Risks

• Heavy reliance on the US (18% of exports) limits diversification.

• Geopolitical tensions in the Middle East, which supplies ~55% of India’s crude oil, could increase export costs.

• Competition from Vietnam and Bangladesh pressures labor-intensive sectors.

Measures Needed to Strengthen Exports

1. Policy Frameworks: Implement Single Window 2.0, integrate customs and certification processes, and finalize FTAs with asymmetric structures.

2. Upgrade Logistics: Integrate Dedicated Freight Corridors with mega ports, expand export processing zones, multi-modal parks, and cold chains.

3. Sustainability Compliance: Develop Green Export Credit and carbon-neutral frameworks to counter EU CBAM.

4. Scale Manufacturing: Expand PLI schemes for rare earths, semiconductors, and link traditional sectors like handlooms to global markets.

5. Leverage Digital Growth: Remove e-commerce caps, implement blockchain-based trade platforms, and promote digital services exports.

6. Mitigate Supply Chain Risks: Maintain buffer stocks of critical commodities like crude oil, lithium, cobalt, and rare earths.

Conclusion

India’s export sector shows resilient growth of 6.15% despite global headwinds, supported by diversification, PLI schemes, and the Export Promotion Mission. However, challenges such as tariffs, EU carbon taxes, geopolitical risks, and global competition require strategic interventions in infrastructure, sustainability compliance, trade agreements, and manufacturing to maintain and enhance India’s global competitiveness.

Tajikistan and Uzbekistan have recently proposed the inclusion of the striped hyena (Hyaena hyaena) in Appendix I and II of the Convention on Migratory Species (CMS). This proposal will be discussed at the upcoming CMS COP15 (Convention on the Conservation of Migratory Species of Wild Animals), aiming to strengthen global conservation efforts for this species.

About Striped Hyena

Taxonomy and Family

The striped hyena belongs to the family Hyaenidae, which has four species:

1. Striped Hyena (Hyaena hyaena)

2. Spotted Hyena

3. Brown Hyena

4. Aardwolf

Appearance

• Slightly smaller than the spotted hyena.

• Characterized by distinct black stripes across its body.

• Possesses a long, bushy mane and strong jaw.

Habitat and Distribution

• Found in savannas, grasslands, semi-deserts, open woodlands, and mountainous areas.

• Geographical range includes South Asia (India, Nepal, Afghanistan), North Africa, Sub-Saharan Africa, Western Asia, and Central Asia.

• These hyenas often cross international borders while searching for food and water.

Characteristics of Striped Hyena

Behaviour

• Territorial: Marks boundaries with scent to warn rivals.

• Social Structure: Generally solitary, but some social organization exists.

• Female Dominance: Adult females are dominant over males and can be aggressive toward other females.

Diet

• Primarily scavengers, feeding on carrion and human refuse.

Movement

• Exhibits long-distance dispersal, seasonal, and nomadic movements depending on prey availability and environmental conditions.

• In arid and semi-arid regions, they range widely due to scarce resources, often moving across countries.

Conservation Status

• IUCN Red List: Near Threatened, indicating potential risk of extinction if threats persist.

• India – Wildlife Protection Act, 1972: Listed in Schedule I, providing the highest level of legal protection.

Significance of CMS Proposal

Inclusion in CMS Appendices I and II would:

• Ensure enhanced global protection for migratory populations of the striped hyena.

• Facilitate cross-border conservation cooperation, as striped hyenas often move across national boundaries.

• Promote research, monitoring, and funding for habitat protection and anti-poaching measures.

A controversy has arisen after the U.S. Department of Defense reportedly blacklisted the AI company Anthropic for refusing to allow its AI systems to be used for domestic surveillance and autonomous weapon applications. This incident has triggered a global debate on the ethical use of artificial intelligence, its role in military operations, and the lack of effective governance frameworks.

1. Areas of Military Use of AI

Artificial Intelligence is increasingly being integrated into military operations in several ways:

• Autonomous Weapons Systems: These are weapons that can select and attack targets without human intervention, raising serious ethical concerns about human control over life-and-death decisions.

• Surveillance and Intelligence: AI is used for analyzing satellite images, signals intelligence, and facial recognition systems. For example, Project Maven in the United States uses AI to identify threats from drone imagery.

• Cyber Warfare: AI helps in detecting and responding to cyber threats quickly and efficiently.

• Logistics and Decision Support: AI supports predictive maintenance, troop deployment, and battlefield simulations, improving operational efficiency.

2. Key Issues Emerging from the Dispute

a) State Security vs Ethical Use

• Governments prioritize national security and technological superiority.

• In contrast, AI companies emphasize ethical deployment and long-term risks.

• This creates a conflict between state power and private innovation.

b) Militarization of Artificial Intelligence

• AI is becoming a critical component of global military competition.

• For instance, the U.S.–China rivalry involves competition in AI, semiconductors, and autonomous weapons.

c) Governance Gap in Military AI

• There is no comprehensive global treaty regulating AI-based weapons.

• Existing frameworks like the Geneva Conventions and discussions on Lethal Autonomous Weapons Systems (LAWS) are not sufficient to address modern AI warfare.

d) Risk of Algorithmic Bias

• AI systems may misidentify targets due to biased data or technical limitations.

• This can result in civilian casualties and wrongful attacks.

e) Dual-Use Technology Challenge

• AI technologies developed for civilian use can easily be adapted for military purposes.

• This makes regulation and control very difficult.

3. Ethical Dimensions

a) Responsibility and Accountability

• In case of harm caused by AI systems, it is unclear whether responsibility lies with the developer or the military authority.

• This creates a serious “accountability gap”.

b) Utilitarianism vs Rights-Based Ethics

• Governments argue that AI surveillance can prevent terrorism and save lives.

• Ethical critics argue that it violates privacy and civil liberties, harming the broader social good.

c) Justice and Fairness

• AI systems trained on limited datasets may lead to biased outcomes, especially in different geographical regions.

• This raises concerns about “digital colonialism” and unfair targeting in developing countries.

4. India’s Position and Way Ahead

a) Strategic Autonomy

• India should reduce dependence on foreign AI systems for defense purposes.

• Dependence may expose vulnerabilities such as external control or restrictions.

b) Human-Centric AI Approach

• India can promote a balanced framework that combines security needs with ethical principles, inspired by humanitarian values.

c) Regulatory Sandboxes and Testing

• Military AI systems should be tested in controlled environments.

• Evaluation should include both technical experts and ethical oversight to ensure safe deployment.

Conclusion

The controversy highlights the growing tension between technological advancement and ethical responsibility. As AI becomes central to military power, there is an urgent need for clear global regulations, accountability mechanisms, and ethical safeguards to ensure that its use remains responsible, fair, and human-centered.

The recent escalation between the United States, Israel, and Iran has developed into a multi-front regional crisis. The conflict intensified after coordinated strikes by the United States and Israel on Iran, followed by Iranian retaliatory attacks on economic and strategic targets in Gulf Cooperation Council (GCC) countries.

The situation has expanded beyond direct confrontation and now involves regional actors and proxy groups, increasing tensions across West Asia. Strategic maritime regions such as the Persian Gulf, Strait of Hormuz, and Red Sea have become critical flashpoints, posing risks to global trade and energy supply.

Key Actors in the Conflict

State Actors

The United States and Israel aim to dismantle Iran’s nuclear capabilities and weaken its network of proxy groups in order to reshape the regional balance of power. The United States has also expressed interest in encouraging internal political change in Iran.

Iran, on the other hand, is focused on regime survival and deterrence. It uses its network of regional allies to expand the scope of the conflict, increase the cost of war for its adversaries, and push international actors to intervene diplomatically.

The Gulf Cooperation Council (GCC) nations, including the UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman, are geographically located in the conflict zone. Many of these countries host major US military bases, which makes them vulnerable to Iranian retaliatory attacks. Their economic infrastructure, such as oil facilities and airports, is also at risk.

Non-State Actors (Axis of Resistance)

Several non-state actors aligned with Iran are actively involved in the conflict.

Hezbollah in Lebanon is engaged in direct clashes with Israel, creating a two-front conflict scenario. The Houthis in Yemen are targeting commercial shipping routes in the Red Sea and Gulf of Aden, disrupting global trade.

The Popular Mobilization Forces (PMF) in Iraq are conducting attacks on US bases and Israeli interests. Additionally, some Kurdish militias, supported by the United States and Israel, act as regional allies against Iran, though they represent a complex and sensitive geopolitical issue.

Strategic Maritime Chokepoints

The conflict has highlighted the importance of several critical maritime routes.

The Strait of Hormuz is a narrow passage connecting the Persian Gulf to the open ocean, and it is essential for global oil transportation. The Persian Gulf itself is one of the world’s most important energy regions, with vast oil reserves.

The Gulf of Oman serves as a gateway between the Arabian Sea and the Persian Gulf, while the Red Sea is a crucial trade route connecting to the Indian Ocean. The Mediterranean Sea also plays a strategic role in linking continents and supporting naval operations.

The Indian Ocean Region (IOR) is becoming increasingly important, especially for countries like India, which depend on secure sea lanes for trade and energy imports.

Major Conflict Zones and Locations

In Iran, key locations such as Tehran, Isfahan, Natanz, and Abadan are strategically important due to their roles in governance, nuclear development, and oil production.

In the Levant region, areas such as Lebanon, Israel, and the Golan Heights are central to the conflict. Cities like Haifa, Tel Aviv, and Beirut are important economic and military centers. The Golan Heights remains a strategically significant and disputed territory.

In the Arabian Peninsula, cities like Dubai, Abu Dhabi, and Manama are vital economic hubs but are vulnerable to attacks due to their proximity and strategic importance. Locations such as Erbil in Iraq and military bases in Cyprus and Turkey also play key roles in the broader conflict dynamics.

Implications of the Conflict

The conflict poses serious challenges to regional and global stability. It increases the risk of a wider regional war involving multiple countries and actors.

There is a significant threat to global energy supplies, especially if disruptions occur in key chokepoints like the Strait of Hormuz. Maritime security is also at risk, with attacks on shipping routes affecting global trade.

The conflict has broader economic consequences, including rising oil prices and disruptions in international markets. For India, the situation is particularly important as it affects energy security, maritime trade, and the safety of Indian seafarers.

Conclusion

The US–Israel–Iran conflict has evolved into a complex geopolitical crisis involving multiple actors and regions. Its impact extends beyond West Asia, affecting global energy markets, maritime security, and international stability. Careful diplomatic efforts and strategic planning are essential to prevent further escalation and ensure peace in the region.

Recently, the Government e-Marketplace (GeM) celebrated the seven-year journey of its flagship initiative SWAYATT (Startups, Women and Youth Advantage through e-Transactions). The initiative reflects the government’s commitment to inclusive growth and digital empowerment in public procurement.

About the SWAYATT Initiative

• The SWAYATT Initiative was launched in February 2019.

• It was designed with the objective of encouraging the participation of startups, women entrepreneurs, and youth in government procurement.

• The initiative promotes inclusive and equitable access to government markets.

Objectives of SWAYATT

The initiative focuses on democratizing public procurement by enabling participation from:

• Startups

• Women-led enterprises

• Youth entrepreneurs

• Micro and Small Enterprises (MSEs)

• Self Help Groups (SHGs)

• Last-mile sellers

Through this, SWAYATT ensures that these groups can directly engage with government buyers via the GeM platform.

Key Features and Significance

• SWAYATT is rooted in GeM’s core principle of social inclusion.

• It addresses three major challenges faced by emerging enterprises:

  • Access to markets

  • Access to finance

  • Access to value addition

• By reducing entry barriers, it helps in promoting entrepreneurship and economic empowerment.

Government e-Marketplace (GeM): Key Facts

• GeM is an online platform established in 2016.

• It facilitates the procurement of goods and services by government ministries, departments, and public sector undertakings (PSUs).

• It is envisioned as the National Procurement Portal of India.

Development and Functioning

• Developed by the Directorate General of Supplies and Disposals (Ministry of Commerce and Industry).

• Supported technically by the National e-Governance Division (Ministry of Electronics and Information Technology).

Key Features of GeM

• It is a completely paperless, cashless, and system-driven platform.

• Ensures transparency, efficiency, and minimal human intervention in procurement processes.

• Enables easy access for buyers and sellers across the country.

Conclusion

The SWAYATT Initiative plays a crucial role in making public procurement more inclusive and accessible, especially for startups, women, and youth entrepreneurs. By leveraging the digital infrastructure of GeM, it contributes to economic empowerment, transparency, and the growth of small enterprises in India.