Indian export challenges amid global deglobalization

The global economic landscape is shifting toward deglobalization as governments prioritize supply chain security and resilience over efficiency. This trend is driven by geopolitical tensions and evolving tariff policies, causing a divide between the Eastern and Western Hemispheres.

In India, exporters are navigating a complex environment characterized by changing tariff structures and unpredictable shipping expenses. While Indian merchandise and services exports reached $863.1 billion for FY 2025–26, businesses face rising freight charges and market specific regulations.

Geopolitical upheaval and the need to detour around maritime chokepoints, such as the Cape of Good Hope, have restructured the container shipping industry. This has resulted in extended lead times and rate volatility. To mitigate these risks, experts advise Indian exporters to adopt strategic planning, such as earlier ordering, diversifying carrier agreements, and utilizing multi-modal transport options. The adoption of AI driven technology for tracking and forecasting is also becoming essential for managing these supply chain complexities.