Finance Minister Nirmala Sitharaman tabled the Economic Survey for 2025–26 in Parliament, formally marking the beginning of the build-up to the Union Budget, which will be presented on Sunday, February 1. Notably, this year’s Budget announcement is scheduled for a weekend.
The Economic Survey 2026 drew attention to the much-debated India–US trade agreement, noting that while negotiations have advanced, certain tariff-related impacts are already visible. At the same time, the Survey observed a gradual shift in India’s export strategy, with exporters reducing their dependence on the US market. Data from April to November of FY26 show increased focus on destinations such as the Middle East, Europe, Africa, and parts of Asia.
The gems and jewellery sector witnessed the sharpest decline in exports to the US, plunging 44.3 percent year-on-year, even as global exports edged up by 0.6 percent. The US share in this sector’s exports fell significantly, while shipments to the UAE and Hong Kong rose strongly, now forming over half of total exports. Exports of gold jewellery to Bahrain and Saudi Arabia also increased, and pearls and precious stones saw higher demand from Canada, Mexico, and China, supported by trade agreements and expectations of future FTAs.
Similarly, marine product exports to the US dipped, but overall growth was driven by strong demand from Asian and European markets. Pharmaceutical exports remained resilient despite tariff uncertainties. Experts emphasised that an India–US trade deal remains crucial, as it would strengthen trade integration, supply chain diversification, and investor confidence.
