India's exports are projected to reach $850 billion in FY26, a marginal increase from $825 billion in FY25, according to the Global Trade Research Initiative (GTRI). This growth faces significant headwinds, including weakening global demand, rising protectionism in advanced economies, and new climate-linked trade barriers like the EU's Carbon Border Adjustment Mechanism. Goods exports are expected to remain flat, while services exports may exceed $400 billion. The GTRI suggests the government review Free Trade Agreements to better integrate Indian firms into global value chains and diversify markets.