India on track for $1 trillion exports in FY27: Piyush Goyal
India is on course to achieve $1 trillion in exports by FY27 despite headwinds from the West Asia crisis, according to commerce and industry minister Piyush Goyal. He said exporters have already surpassed 15% of the target, crediting the momentum to recently concluded and ongoing free trade agreements and sustained improvements in the ease of doing business.
US trade pact framework ready, awaiting tariff edge
Goyal said India and the United States have finalized the framework for a proposed trade agreement. However, implementation will proceed only after India secures a clear tariff advantage over competing exporter nations. He emphasized that duties on Indian products must be lower relative to rivals for the agreement to deliver the intended competitive edge.
Milestones and outlook
Reaffirming the $1 trillion export goal for FY27, Goyal outlined a broader ambition to reach $2 trillion in annual exports over the next five years. Official estimates indicate that cumulative merchandise and services exports for April–May 2026–27 stood at $162.69 billion, up 14.66% from $141.89 billion in the same period a year earlier. He said this early progress, coupled with ongoing policy measures, underpins confidence in meeting the full-year target.
Betting on AI and digital infrastructure
Beyond trade negotiations, the minister highlighted efforts to bolster India’s competitiveness in emerging sectors, particularly artificial intelligence. A majority of the ₹10,000-crore Startup India Fund of Funds 2.0 has been earmarked to support startups building AI products and services, aiming to catalyze venture and growth capital across the ecosystem. The Department for Promotion of Industry and Internal Trade has notified the fund to accelerate deployment.
Goyal also backed Maharashtra’s strategy to attract large-scale data centre investments, noting that Mumbai’s robust network connectivity and submarine cable landing stations make it a preferred location. He said these projects could draw “lakhs of crores” of rupees in investments, praising the state’s dedicated policy to encourage data centres while acknowledging that facilities will expand nationwide as data generation rises across regions.
Rupee and global factors
Addressing currency movements—from around ₹60 per US dollar in 2014 to about ₹95.50 in 2026—Goyal said exchange rates are primarily influenced by international developments, underscoring the role of global macroeconomic conditions in shaping domestic currency trends.
Bottom line
Goyal expressed strong confidence that a mix of trade pacts, regulatory reforms, and targeted bets on AI and digital infrastructure will keep India’s exports on a firm path to $1 trillion in FY27, while laying the groundwork for the longer-term $2 trillion aspiration, even as geopolitical uncertainties persist.
