India's exports to hit $1 trillion in FY27, $2 trillion in 5 years: Goyal
Synopsis
India's FY26 exports hit a record $863 billion despite global trade turbulence — and Commerce Minister Piyush Goyal is already raising the bar to $1 trillion for FY27 and $2 trillion over five years. With the Oman CEPA activating in June and EU and UK deals imminent, India's FTA network now covers two-thirds of global trade, setting up what could be the country's most consequential trade expansion in decades.
Key Takeaways
Commerce Minister Piyush Goyal set India's export target at $1 trillion for FY27 and $2 trillion over the next five years.
India's goods and services exports reached an all-time high of $863 billion in FY26 .
The India-Oman CEPA , signed on 18 December 2025 , is expected to take effect from 1 June , offering zero-duty access on 98.08% of Oman's tariff lines.
Bilateral India-Oman trade stood at $10.61 billion in FY25, up 18.6% year-on-year.
India's FTA network now covers over two-thirds of global trade ; EU and UK pacts expected this year.
The government has designated reducing logistics costs as an urgent national mission, releasing the LEADS 2025 and LEAPS 2025 reports.
Commerce Minister Piyush Goyal on Monday, 18 May set an ambitious export target of $1 trillion for FY27, while projecting that India's total exports would cross $2 trillion within the next five years. The announcement came as India recorded an all-time high of $863 billion in combined goods and services exports in FY26, even as global trade faced headwinds from US tariff disruptions and geopolitical tensions.
Record FY26 Exports Despite Global Headwinds
India's export performance in FY26 defied a turbulent international environment marked by the ongoing war in Ukraine and escalating tensions in West Asia linked to the Iran conflict. Goyal described India as 'a bright spot amid global geopolitical and economic uncertainty,' crediting the country's diversified trade partnerships and competitive cost base. The $863 billion figure represents an all-time high for the country and sets a strong baseline for the $1 trillion FY27 target.
FTA Network Now Covers Two-Thirds of Global Trade
A key driver of India's export ambition is its expanding free trade agreement (FTA) network. Goyal said India's FTAs now cover over two-thirds of global trade. Notably, the India-Oman Comprehensive Economic Partnership Agreement (CEPA), signed on 18 December 2025, is expected to come into effect from 1 June. The pact grants India zero-duty access on 98.08 per cent of Oman's tariff lines, covering 99.38 per cent of Indian exports by value — with textiles among the key beneficiaries.
India, in turn, will reduce duties on approximately 78 per cent of its tariff lines, covering nearly 95 per cent of imports from Oman, with sensitive products managed through tariff-rate quotas. Negotiations for the agreement began in November 2023 and concluded in August 2025 after five rounds of talks. Bilateral trade between the two countries stood at $10.61 billion in 2024-25, a growth of 18.6 per cent over the previous year.
More FTAs Coming Into Force This Year
India has already operationalised trade agreements with the UAE, Australia, and the European Free Trade Association (EFTA) bloc. Landmark pacts with the European Union and the United Kingdom are expected to come into force this year, pending completion of legal ratification processes. 'Other FTAs, which are going through legal ratification, will also start kicking in,' Goyal said at the event.
Logistics Push to Boost Competitiveness
At the same event, Goyal released the seventh edition of the Logistics Ease Across Different States (LEADS) 2025 report and presided over the 4th LEAPS 2025 (Logistics Excellence, Advancements, and Perform Shield) ceremony. He said reducing logistics costs has been designated an urgent national mission, with heavy investments being made in infrastructure and delivery systems to ensure seamless supply chains. The minister highlighted rapid startup innovation and India's skilled, cost-competitive workforce as additional pillars of export growth.
With the EU and UK FTAs on the horizon and the Oman CEPA set to activate in June, India's trade architecture is expanding at pace — the next milestone will be whether the $1 trillion FY27 target holds against any fresh global demand shocks.
Point of View
Against a global trade environment that remains fragile. The real story is structural: India's FTA web now spans two-thirds of global trade, and the Oman CEPA's near-zero duty access is a template being replicated with the EU and UK. But FTAs create market access, not exports — the gap between signed agreements and actual export growth has historically been wide for India. Whether logistics cost reductions and startup-driven supply chain upgrades can close that gap fast enough to hit the $2 trillion five-year target is the question mainstream coverage is not asking loudly enough.
NationPress
12 Aug 2026
Frequently Asked Questions
What is India's export target for FY27?
Commerce Minister Piyush Goyal has set India's export target for FY27 at $1 trillion, up from the all-time high of $863 billion recorded in FY26. Over the next five years, the government is targeting cumulative exports of $2 trillion.
How much did India export in FY26?
India's total goods and services exports reached an all-time high of $863 billion in FY26, despite global headwinds from US tariff disruptions, the Ukraine war, and tensions in West Asia.
What is the India-Oman CEPA and when does it take effect?
The India-Oman Comprehensive Economic Partnership Agreement (CEPA) was signed on 18 December 2025 and is expected to come into force from 1 June. It grants India zero-duty access on 98.08% of Oman's tariff lines, covering 99.38% of Indian exports by value, with textiles among the key beneficiaries.
Which other FTAs is India implementing in 2025?
India has already operationalised trade pacts with the UAE, Australia, and the EFTA bloc. Agreements with the European Union and the United Kingdom are expected to come into force this year after legal ratification is completed.
What share of global trade do India's FTAs cover?
According to Commerce Minister Piyush Goyal, India's free trade agreements now cover over two-thirds of global trade. The government views this expanding FTA network as a key lever for achieving the $1 trillion FY27 export target.
