NEW DELHI (Web Desk) —India recorded its highest-ever total exports of $863 billion in the financial year 2025–26 (FY26), according to official government data, underscoring strong external sector performance despite ongoing global uncertainties and geopolitical disruptions.
The export milestone reflects sustained growth across both merchandise and services sectors, with strong contributions from information technology services, pharmaceuticals, engineering goods, chemicals, textiles, and refined petroleum products.
Officials said the performance was achieved in a challenging global environment shaped by conflict and instability in West Asia, disruptions in global shipping lanes, and continued tariff-related pressures from the United States on select export categories.
Despite these constraints, Indian exporters benefited from diversified market access, steady demand in advanced economies, and a gradual recovery in global trade volumes. Services exports, in particular, continued to play a stabilising role, driven by digital services, software solutions, and business process outsourcing.
Strong performance across sectors
Government data indicated that merchandise exports accounted for a significant portion of the total, supported by growth in engineering goods, electronics, and petroleum products. Meanwhile, services exports remained a key driver of overall growth, reflecting India’s competitive advantage in skilled labour and technology-driven industries.
Exporters also reported improved demand from Europe, Southeast Asia, and parts of Africa, helping offset volatility in certain West Asian markets impacted by geopolitical tensions and supply chain disruptions.
Global headwinds persist
Officials acknowledged that external challenges persisted throughout the year. The conflict and instability in West Asia continued to affect shipping routes and insurance costs, while fluctuations in global energy prices added pressure on trade margins.
At the same time, tariff adjustments by the United States on selected categories created additional cost burdens for exporters, particularly in labour-intensive industries such as textiles, leather, and small-scale manufacturing.
Policy support and diversification
The government attributed part of the export growth to policy measures aimed at improving logistics efficiency, expanding production-linked incentive schemes, and strengthening trade agreements with key partners.
Efforts to diversify export markets and reduce dependence on any single region were also highlighted as critical factors behind the record performance.
