India’s total exports reached an all-time high of $863 billion in FY26, registering a 4.6% year-on-year growth despite persistent global economic uncertainties and trade disruptions.
The growth was driven by resilient performance across key sectors, including engineering goods, electronics, pharmaceuticals, and services exports. Strong demand from major markets such as the US, Europe, and parts of Asia supported outbound shipments even as inflationary pressures and geopolitical tensions weighed on global trade.
Services exports continued to play a crucial role, contributing significantly to the overall export tally. IT and business services remained robust, while travel and financial services also showed steady recovery during the fiscal year.
On the goods side, electronics exports recorded notable growth, supported by increased smartphone shipments and production-linked incentive (PLI) schemes. Engineering exports maintained positive momentum, while sectors like pharmaceuticals and chemicals sustained stable demand.
However, challenges persisted throughout the year. Ongoing geopolitical tensions, particularly in West Asia and key shipping routes, led to higher freight costs, supply chain disruptions, and insurance premiums. Sluggish demand in certain developed economies and currency fluctuations also impacted export competitiveness.
Despite these headwinds, India’s diversified export basket and expanding trade partnerships helped cushion the impact. Progress in Free Trade Agreement (FTA) negotiations with key partners, including the UK and the European Union, is expected to further boost export growth in the coming years.
Government officials attributed the record performance to policy support, improved manufacturing capabilities, and increased integration into global value chains. Exporters, meanwhile, remain cautiously optimistic, noting that sustained growth will depend on global demand recovery, stable logistics conditions, and continued policy backing.