India's merchandise exports to the US have shown a surprising increase in FY26, despite a 50% tariff imposed by the US. This resilience, however, is seen as a temporary adjustment to the new tariff regime rather than a sign of lasting strength. Experts suggest that a win-win trade agreement with the US is crucial for India's economy in 2026 to avoid negative impacts on growth, jobs, and competitiveness due to ongoing high tariffs.