India must radically rethink its export strategy or risk stagnation, cautions Policy Circle Bureau, a think tank, following the US’s 26% import duty on Indian goods—briefly eased by a 90-day reprieve. While the ₹2,250 crore Export Promotion Mission and revised duty drawback rates offer short-term relief, they fail to address deeper structural issues.
With merchandise exports flat at $437.4 billion in FY25, Policy Circle Bureau argues for a shift from top-down policymaking to a state-led approach, anchored by key investors and focused on sector-specific growth. A complete overhaul of Export Promotion Councils is also seen as essential. Currently limited to ceremonial roles, EPCs must be held to performance-based KPIs such as sectoral export growth, new market access, and tariff resolution, Policy Circle suggested.
Policy Circle also calls for urgent market diversification, expedited FTAs, and a realistic currency policy. Without decentralisation, regulatory overhaul, and strategic clarity, India risks losing its competitive edge in a fragmented global trade landscape, it cautioned.