India’s overall export performance during the financial year 2025–26 (April–March) reflects steady growth, driven primarily by the services sector and select merchandise categories. The cumulative exports (merchandise and services combined) are estimated at US$ 860.09 billion, registering a growth of 4.22% over the previous financial year’s figure of US$ 825.26 billion. On the import side, total imports are estimated at US$ 979.40 billion, reflecting a higher growth of 6.47%, leading to a widening trade deficit during the year.
During March 2026, India’s total exports (merchandise and services combined) were estimated at US$ 74.11 billion, marking a decline of 4.58% compared to March 2025. Similarly, total imports stood at US$ 76.55 billion, showing a contraction of 5.76% year-on-year. Despite the decline in both exports and imports, the trade deficit narrowed to US$ 2.44 billion in March 2026 compared to US$ 3.55 billion in the same month of the previous year, indicating relatively improved trade balance conditions in the short term.
The merchandise trade segment exhibited moderate growth over the full financial year. Merchandise exports during FY 2025–26 reached US$ 441.78 billion, registering a marginal growth of 0.93% compared to the previous year. However, merchandise imports increased significantly to US$ 774.98 billion, resulting in a merchandise trade deficit of US$ 333.19 billion, higher than the previous year’s deficit. This indicates continued dependence on imports, particularly in key sectors such as energy and industrial inputs.
A notable positive trend was observed in non-petroleum exports, which stood at US$ 387.88 billion during FY 2025–26, reflecting a growth of 3.62% over the previous year. Additionally, non-petroleum and non-gems & jewellery exports reached US$ 359.67 billion, indicating strengthening diversification in India’s export basket. However, imports under the same category also rose significantly, suggesting sustained domestic demand and industrial activity.
The services sector continued to be a major contributor to India’s export growth. Services exports during FY 2025–26 are estimated at US$ 418.31 billion, marking a robust growth of 7.94% over the previous year. Services imports stood at US$ 204.42 billion, resulting in a substantial services trade surplus of US$ 213.89 billion. This surplus played a critical role in partially offsetting the merchandise trade deficit and stabilizing the overall external sector.
Sector-wise analysis for March 2026 indicates that key drivers of export growth included petroleum products, engineering goods, mica, coal and other ores, processed minerals, other cereals, and handicrafts (excluding handmade carpets). Among these, exports of other cereals recorded a remarkable growth of over 108%, while mineral-related exports and handicrafts also showed strong positive trends. These sectors contributed significantly to sustaining export momentum during the month.
On the import side, several categories registered a decline in March 2026 compared to the previous year. Notable reductions were observed in imports of petroleum crude and products, gold, cotton raw & waste, project goods, and pulses, among others. This decline in imports across multiple sectors contributed to the contraction in overall imports during the month and helped in narrowing the trade deficit.
Geographically, India’s export performance showed strong growth in select markets. During March 2026, significant increases were observed in exports to Singapore, Malaysia, China, Tanzania, and Sri Lanka, indicating expanding trade relationships in Asia and Africa. For the full financial year, top export destinations showing notable growth included China, Spain, Hong Kong, Vietnam, and Sri Lanka, highlighting diversification in export markets.
In conclusion, India’s external trade performance in FY 2025–26 demonstrates resilience amid global economic uncertainties. While merchandise exports showed modest growth, the services sector emerged as a strong pillar supporting overall export expansion. The widening trade deficit, however, underscores the need for continued policy focus on boosting domestic manufacturing, enhancing export competitiveness, and reducing import dependency in critical sectors.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2252272®=3&lang=1
