India must urgently rethink its export strategy or risk long-term stagnation, warns Policy Circle Bureau, a leading policy think tank. The caution comes in the wake of the United States imposing a 26% import duty on Indian goods—currently eased by a temporary 90-day reprieve.

While recent government measures like the ₹2,250 crore Export Promotion Mission and revised duty drawback rates offer short-term relief, the think tank argues they do little to resolve deeper structural challenges.

With merchandise exports remaining flat at $437.4 billion in FY25, Policy Circle urges a fundamental shift in India’s approach—moving from top-down policymaking to a more decentralised, state-led export strategy driven by key investors and tailored to sector-specific needs.

A major reform of Export Promotion Councils (EPCs) is also deemed necessary. Currently seen as symbolic bodies, EPCs should be made accountable through performance-based KPIs such as export growth by sector, success in opening new markets, and resolving tariff issues.

The think tank further recommends rapid market diversification, faster execution of free trade agreements, and the adoption of a realistic and competitive currency policy. Without regulatory reforms, decentralisation, and clearer strategic direction, India risks falling behind in an increasingly fragmented and competitive global trade environment, it warned.