Diversification gains: On India and its export competitiveness

India's merchandise exports showed commendable growth in April 2026, driven by diversification of export destinations and resilience in key sectors like engineering, electronics, and pharmaceuticals, despite global trade disruptions and a significant fall in trade with West Asia. Non-oil exports also performed well, and overall export growth outpaced imports. The services sector's share in total exports has significantly increased, but concerns remain about maintaining competitiveness, especially in IT services due to AI, and the need to improve cost, quality, and scale across all exports. The article highlights the government's push for diversification and trade deals, alongside a surge in gold imports leading to a duty hike.