New Delhi, Sep 4: Lower tariffs and easier access to overseas markets could help India expand its exporter base and bring more small and mid-sized businesses into global trade, according to a report.
The report highlights a gap in India’s export ecosystem, where a relatively small group of large companies accounts for a significant share of overseas shipments, while many smaller and mid-sized firms have yet to build a strong presence in international markets.
Reducing tariff barriers could give these businesses a better opportunity to compete abroad by lowering the cost of entering new markets and improving the price competitiveness of Indian products. This could be particularly beneficial for manufacturing companies that operate with tighter margins.
A wider exporter base could also help India diversify its export basket and strengthen its position in global supply chains. Industries such as engineering goods, textiles, chemicals, pharmaceuticals, electronics and other manufactured products could benefit from improved market access.
The issue has gained importance as global trade patterns continue to change. Businesses are increasingly looking to diversify supply chains and source products from multiple countries, creating an opportunity for India to attract more global manufacturing and export activity.
India’s exports have remained resilient despite global economic and geopolitical challenges. Merchandise and services exports together were estimated at $720.76 billion during April-January 2025-26, up 6.15 per cent from the corresponding period a year earlier. Services exports alone rose 10.57 per cent to $354.13 billion during the period.
Trade agreements and preferential tariff arrangements could therefore play an important role in helping Indian companies access major international markets. Lower duties, simpler trade procedures and predictable rules can make it easier for smaller firms to scale their operations and become regular exporters.
For India, expanding the number of companies participating in global trade could have a broader economic impact by supporting manufacturing, investment, employment and foreign exchange earnings.
The report’s assessment comes at a time when India is seeking to deepen trade partnerships and improve market access for domestic businesses. A stronger and more diverse exporter base could help the country take greater advantage of the ongoing realignment of global supply chains.