The Economic Survey for the fiscal year 2025-2026 has issued a stark warning regarding India's export sector, emphasizing that frequent and unpredictable policy changes at the export front are significantly disrupting supply chains. The comprehensive report, released ahead of the Union Budget 2026, underscores a critical challenge: once export markets are lost due to such disruptions, they become exceedingly hard to regain, posing long-term risks to the country's trade competitiveness and economic growth.
Key Findings on Export Policy Volatility
According to the survey, the instability in export policies creates uncertainty for businesses, leading to inefficiencies and increased costs in logistics and production. This volatility not only affects immediate export volumes but also damages India's reputation as a reliable trading partner on the global stage. The document stresses that consistent and predictable policy frameworks are essential for fostering a stable export environment, which in turn can enhance India's position in international markets and support sustainable economic development.
Agricultural Exports Face Multiple Hurdles
The Economic Survey 2025-2026 delves specifically into the agricultural export sector, revealing that it is influenced by a complex array of supply-side factors. These include:
- Food Security Concerns: Balancing export demands with domestic food security needs remains a delicate issue, often leading to policy shifts that impact export consistency.
- Inadequate Processing Facilities: A lack of modern processing infrastructure hampers the ability to add value to agricultural products, reducing competitiveness in global markets.
- Infrastructure Bottlenecks: Challenges in transportation, storage, and port facilities create delays and increase costs, further exacerbating supply chain disruptions.
- Regulatory Hurdles: Various regulations, from quality standards to export permits, add layers of complexity that can slow down agricultural exports and deter potential buyers.
The survey points out that these factors, combined with frequent policy changes, create a challenging environment for agricultural exporters, making it difficult to maintain steady growth and market share abroad.
Implications for India's Trade Strategy
In light of these findings, the Economic Survey 2025-2026 calls for a more strategic approach to export policy formulation. It suggests that long-term planning, stakeholder consultation, and gradual implementation of changes could mitigate the negative impacts on supply chains. By addressing the identified bottlenecks in agriculture and other sectors, India can work towards rebuilding lost markets and securing new ones, ultimately boosting its export performance and contributing to broader economic resilience.
The release of this survey comes at a crucial time, as policymakers prepare for the Union Budget 2026, with expectations that its insights will inform measures to stabilize and enhance India's export ecosystem in the coming years.
