Vol. 11, Issue 4, Part B (2025)

Abstract
This study examines the External Sector scenario of the Indian economy in the pre and post COVID era, with an emphasis on trade dynamics, capital flows, and currency rate volatility. This study used secondary data from various sources, such as the Reserve Bank of India, World Bank database, MoSPI, Export Import Data Bank (Annual), Trade Statistics, and Ministry of Commerce and Industry. This study found that the covid-19 pandemic did not affect the Indian economy but also affected the world economy. This study found that in the first five months of 2020, the worldwide volume of goods trade decreased by 20% compared with the same period in 2019. This reduction was more abrupt than it was during the global financial crisis. This study concludes that in recent years, global economic growth has been impacted by geopolitical conflicts and nationalism, and increasing India's exports of goods and services would be more challenging than previously. To turn this difficulty into an opportunity, both the business and public sectors should prioritize product safety, quality consciousness, and policy stability.