India’s exports are holding firm despite the sting of rising U.S. tariffs, supported by strong domestic fundamentals that have helped cushion external shocks and demonstrate the country’s ability to navigate a volatile global trade landscape, the Economic Survey 2026 shows. The Survey noted that reciprocal U.S. tariffs of 25% were announced in April at a time when India was expected to negotiate early relief. In August, an additional 25% penal tariff on most Indian merchandise surprised many, prompting downward revisions in growth forecasts.