Will India’s Economy Become Stronger in 2026 with Rising Exports Due to FTAs?
Synopsis
Industry leaders are optimistic about India's economic growth in 2026, highlighting the potential rise in exports driven by recent free trade agreements. With a focus on policy stability and global trade relations, India is set to enhance its position in the global market significantly. Discover how these factors could propel India towards becoming the third-largest economy.
Key Takeaways
India's economy is projected to strengthen in 2026.
Free trade agreements are crucial for boosting exports.
Policy stability contributes significantly to economic growth.
The textile sector is expected to see considerable advancements.
India aims to be the third-largest economy by 2028.
New Delhi, Jan 1 (NationPress) Industry leaders expressed optimism on Thursday regarding the strengthening of India’s economic landscape in 2026, anticipating a significant rise in exports driven by free trade agreements with prominent nations.
During an interview with IANS, they highlighted that policy stability and growing global trade relations will be pivotal in propelling growth in the upcoming year.
The recent free trade agreements with countries like Oman, New Zealand, and the UK are projected to significantly enhance India’s export capabilities.
All Gujarat Textile Federation president Ashok Jirawala remarked that India achieving the fourth position globally is a source of pride.
“This milestone has been achievable due to a stable government and favorable policies,” he noted.
He further mentioned that the government has implemented numerous positive initiatives for the textile industry, such as improved access to quality yarn, contributing to the sector's growth.
“The free trade agreements finalized in 2025 have unlocked new prospects for exporters, and I am confident these will catalyze a substantial increase in exports in the coming years,” Jirawala stated.
Nikhil Madrasi, president of the Southern Gujarat Chamber of Commerce and Industry, conveyed that the new year has ushered in renewed optimism for the nation.
“India has surpassed Japan in economic size and aims to become the world's third-largest economy by 2028,” he pointed out.
“To realize this ambition, India must significantly boost its exports and develop alternative global trade partnerships rather than relying heavily on the US,” he added.
Nainesh Pachchigar, head of the India Bullion and Jewellers Association in Gujarat, emphasized the critical role of the gems and jewellery sector in driving export growth.
He noted that India exports jewellery and gems valued at approximately $7.8 million daily. “The industry is striving to escalate this figure, and the newly signed free trade agreements are poised to provide further impetus,” Pachchigar concluded.
Point of View
It is evident that the optimism surrounding India's economic growth is well-founded. The emphasis on free trade agreements and the government's supportive policies highlight a strategic approach to enhancing the country's global standing. While challenges remain, the focus on diversifying trade partnerships is a prudent direction for sustainable growth.
NationPress
2 May 2026
Frequently Asked Questions
What are free trade agreements?
Free trade agreements are treaties between two or more countries that reduce or eliminate trade barriers, such as tariffs, allowing for a more efficient exchange of goods and services.
How will free trade agreements impact India's exports?
These agreements are expected to enhance market access for Indian products, making them more competitive in international markets, which could lead to a significant increase in export volumes.
Which countries has India recently signed free trade agreements with?
India has recently signed free trade agreements with Oman, New Zealand, and the UK, among others.
What role does the textile sector play in India's economy?
The textile sector is one of India's largest industries, contributing significantly to exports, employment, and overall economic growth.
What is the target for India’s economy by 2028?
India aims to become the world's third-largest economy by 2028, driven by increased exports and strategic trade relationships.
