India’s exports rise to $860 billion in FY26, March sees slight decline

Ziraat Times News Desk

New Delhi, April 15: India’s total exports of goods and services reached an estimated $860.09 billion in the financial year 2025–26, registering a growth of 4.22% over the previous fiscal, according to data released by the Ministry of Commerce and Industry.

The increase was driven largely by growth in services exports and modest gains in merchandise trade, even as the month of March 2026 recorded a year-on-year decline in exports.

Annual trade shows moderate growth

Merchandise exports during FY26 stood at $441.78 billion, up 0.93% from $437.70 billion in FY25. Non-petroleum exports grew more strongly by 3.62% to $387.88 billion, indicating some diversification beyond energy-linked shipments.

Services exports emerged as a key contributor, rising to $418.31 billion, compared to $387.55 billion in the previous year.

Overall imports during the fiscal rose at a faster pace of 6.47% to $979.40 billion, widening the total trade deficit to $119.30 billion, compared to $94.66 billion in FY25.

March exports decline year-on-year

For March 2026, total exports (goods and services combined) were estimated at $74.11 billion, marking a decline of 4.58% compared to March 2025.

Imports during the month also fell by 5.76% to $76.55 billion, resulting in a narrower monthly trade deficit of $2.44 billion, compared to $3.55 billion a year earlier.

Merchandise exports dropped to $38.92 billion in March from $42.05 billion a year ago, while services exports were estimated at $35.20 billion, slightly lower than $35.63 billion in March 2025.

Key sectors drive export growth

Despite the overall monthly decline, several sectors recorded positive growth in March 2026. These included:

• Petroleum products, which rose 5.88% year-on-year

• Engineering goods, up 1.13%

• Mica, coal and other ores, which grew 11.27%

• Other cereals, which more than doubled, albeit from a low base

• Handicrafts (excluding handmade carpets), which increased by 8.51%

The continued growth in handicraft exports is likely to be closely tracked by regions dependent on artisan-based economies, including Kashmir, where export performance directly impacts livelihoods.

Import trends show mixed pattern

On the import side, several major categories recorded declines in March, including petroleum crude and products, gold, cotton, and project goods. At the same time, imports from key partners such as China, the United States, Thailand, and Oman registered growth.

Non-petroleum trade and core sectors

Non-petroleum and non-gems & jewellery exports for March stood at $31.69 billion, lower than $34.25 billion in the same month last year. However, on an annual basis, this segment showed growth, reflecting relative resilience in core manufacturing sectors.

For the full fiscal, non-petroleum, non-gems & jewellery exports rose to $359.67 billion, compared to $344.50 billion in FY25.

Services sector cushions trade balance

The services sector continued to provide a buffer to the overall trade balance. India recorded a services trade surplus of $213.89 billion in FY26, up from $188.84 billion in the previous year.

However, this was not sufficient to offset the widening merchandise trade deficit, which increased to $333.19 billion during the year.

Changing trade partners

Among export destinations, countries such as China, Spain, Vietnam, and Sri Lanka recorded notable growth during FY26.

On the import side, India saw increased sourcing from China, United States, Peru, and United Kingdom.

Outlook

While the annual export figures indicate steady growth, the decline in March exports suggests emerging uncertainties in global demand and commodity markets. The divergence between merchandise and services performance also highlights structural shifts in India’s external trade profile.