India’s Exports Scale Record $863 Billion in FY26, Services Sector Leads Growth Surge

NEW DELHI/CHANDIGARH, Jun 10: India’s export sector achieved a historic milestone in FY 2025-26, with total exports touching an all time high of USD 863 billion, underscoring the country’s growing resilience and competitiveness despite a challenging global economic environment.

The figures, shared by Commerce Ministry Additional Secretary Nitin Kumar Yadav during a convention of exporters, industry bodies and farmer producer organisations in Chandigarh, reflect the steady expansion of India’s presence in international markets and the increasing importance of services exports in driving overall trade growth. India’s total exports have risen significantly from USD 468 billion in FY 2014-15 to USD 863 billion in FY 2025-26, registering a compound annual growth rate of 5.7 per cent.

The export performance comes at a time when many economies continue to grapple with geopolitical tensions, supply chain disruptions, inflationary pressures and slowing global demand. Against this backdrop, India’s achievement has been viewed as a sign of the country’s growing economic strength and adaptability.

A major contributor to the record performance was the services sector. Services exports surged from USD 158 billion in FY15 to USD 421 billion in FY26, recording a robust annual growth rate of 9.3 per cent. The sharp rise reflects increasing global demand for Indian IT services, business process management, consulting, financial services and other professional offerings.

Merchandise exports also maintained an upward trajectory. Goods exports increased from USD 310 billion in FY15 to USD 442 billion in FY26, demonstrating the continued strength of sectors such as engineering goods, pharmaceuticals, chemicals, electronics, textiles and agricultural products.

Officials noted that non-petroleum exports reached a record USD 387.9 billion, highlighting the diversification of India’s export basket and reducing dependence on petroleum-linked trade. The performance indicates that Indian manufacturers are increasingly finding opportunities across a broader range of sectors and markets.

Trade experts attribute part of the success to India’s strategy of negotiating market access agreements with key economies. Recent trade pacts and economic partnerships have opened new opportunities for Indian exporters while helping businesses access larger consumer markets.

Among the most significant initiatives is the Trade and Economic Partnership Agreement with the European Free Trade Association, which includes investment commitments and improved market access for Indian products. Government officials believe such agreements will continue to support export growth in the coming years.

The services-led nature of export growth is also reshaping India’s trade profile. Unlike traditional export economies heavily dependent on manufactured goods, India is increasingly leveraging its skilled workforce and digital capabilities to expand overseas earnings through knowledge based industries.

Economists say the strong export numbers have several positive implications. Higher exports contribute to economic growth, generate employment opportunities, improve foreign exchange earnings and strengthen investor confidence. The record performance also helps cushion the economy against external shocks by diversifying sources of growth.

Industry representatives welcomed the achievement but stressed the need for continued policy support. Exporters have sought improvements in logistics infrastructure, easier access to finance, simplified compliance procedures and stronger integration into global value chains.

Experts caution that challenges remain. Rising geopolitical uncertainties, disruptions in maritime trade routes and slowing growth in major economies could affect demand in key export markets. However, India’s diversified export basket and expanding services sector are expected to provide a degree of resilience.

The government has reiterated its commitment to achieving higher export targets by supporting manufacturing, encouraging innovation and promoting trade facilitation measures. Initiatives such as production linked incentive schemes, logistics upgrades and digital trade platforms are expected to further strengthen export competitiveness.

As global trade patterns evolve, India’s record export performance in FY26 highlights the country’s growing role in international commerce. The achievement not only reflects strong demand for Indian products and services but also signals the emergence of a more diversified and globally integrated economy capable of sustaining growth amid external uncertainties.