India Exports FY26 Hit Record $860 Billion, Says Piyush Goyal

India Exports FY26 reached a historic milestone of $860.09 billion, marking a 4.22% increase from $825.26 billion in the previous year, as announced by Commerce Minister Piyush Goyal. This growth was largely driven by strong performance in services exports, while merchandise exports saw a modest rise to $441.78 billion. Despite global uncertainties, India managed to expand its export footprint through trade agreements and policy support.

India Exports FY26: Key Growth Drivers and Sector Performance

The surge in India Exports FY26 was supported by sectors like electronics, engineering goods, pharmaceuticals, and IT services. Services exports alone contributed around $418 billion, highlighting India’s strength in software and business process outsourcing. Government initiatives such as PLI schemes, ease of doing business reforms, and multiple trade agreements with countries like Australia and the UAE played a crucial role. However, global challenges such as inflation, recession fears, and Red Sea disruptions impacted export momentum, especially in March.

Outlook and Economic Impact

The record India Exports FY26 figure signals resilience in India’s external sector, boosting employment, MSME growth, and foreign exchange reserves. However, concerns remain as merchandise export growth stayed below 1%, indicating structural weaknesses. Rising geopolitical tensions in West Asia could further disrupt trade flows in the coming months.

To sustain growth, policymakers must focus on trade diversification, logistics support, and finalising key agreements with regions like the EU and UK. Overall, while India Exports FY26 mark a significant achievement, maintaining this momentum will require navigating global uncertainties effectively.