Dear Friends,

As we navigate a rapidly evolving economic landscape, it is a privilege to share that the global economy continues to demonstrate remarkable resilience against severe geopolitical headwinds. According to the International Monetary Fund’s (IMF) April 2026 World Economic Outlook, global economic growth is projected to hold steady at 3.1% in 2026, weathering the storm of recent Middle East conflicts and shifting trade policies. This resilience is echoed by the World Trade Organization (WTO), which reported a surprise 4.6% surge in global goods trade volumes in 2025, fuelled heavily by a worldwide boom in artificial intelligence and technology investments. While institutions like the World Bank caution that global trade growth may moderate later this year as inventory demands fade and tariff impacts materialize, India’s export sector has already proven its extraordinary fortitude. Defying global pressures, our total exports grew by 4.2% to reach an impressive US$ 860.09 billion during the 2025-26 period, largely propelled by a stellar 7.9% growth in services exports.

To further shield our economy from volatility and aggressively expand our global footprint, the Government of India has secured historic international trade milestones. The watershed India-European Union Free Trade Agreement, concluded on January 27, 2026, will eliminate or drastically reduce tariffs on nearly $33 billion of Indian exports, injecting immense vitality into our labour-intensive sectors. This victory is amplified by the February 7 India-US Interim Trade Agreement, which successfully rolled back the restrictive 25% additional tariffs down to a reciprocal 18%, restoring vital market access for our businesses. Complementing these global wins are critical domestic initiatives, including the massive ₹25,060 crore Export Promotion Mission and the Commerce Department's newly formed committee to draft a transformative SEZ 2.0 policy. While we appreciate the recent budget's initial gesture allowing SEZ to DTA sales at concessional rates, our analysis reveals it falls short for most manufacturers. We remain fully committed to supporting your business needs as these new policies are finalized. Let us leverage these powerful new partnerships and upcoming reforms to drive unprecedented success in the FY ahead.