India Records Highest Annual Export Performance in FY26
India achieved a major milestone in external trade during the financial year 2025-26 by recording its highest-ever exports. According to revised data released by the commerce ministry, the country’s combined exports of merchandise and services rose to $863.11 billion during FY26.
This marked a significant increase from the $825.26 billion recorded in FY25, highlighting India’s continued resilience in global trade despite a challenging international economic environment.
The growth in exports came at a time when many global economies were facing slowing growth, inflationary pressures, supply chain disruptions, and geopolitical instability. Against this backdrop, India’s export performance reflected the strength of both its manufacturing capabilities and expanding services sector.
Merchandise Exports Maintain Stable Growth
India’s merchandise exports remained relatively stable during FY26 despite ongoing global uncertainties.
Goods exports during the year stood at $441.78 billion compared to $437.70 billion in the previous financial year. Although the growth was moderate, it demonstrated the ability of Indian exporters to sustain international demand amid difficult trade conditions.
Several industries continued contributing to export momentum, supported by diversified manufacturing activity and stable overseas demand in select sectors. Exporters navigated challenges such as fluctuating commodity prices, rising logistics costs, and geopolitical disruptions that impacted global trade flows during the year.
The positive trend in merchandise exports also reflected the growing competitiveness of Indian products across international markets.
Services Exports Emerge as the Biggest Growth Driver
The services sector played the most important role in India’s record export performance during FY26.
Services exports surged to $421.32 billion compared to $387.55 billion in FY25, representing growth of nearly 9%. The sharp increase underlined the expanding global demand for India’s technology-driven and knowledge-based services.
Indian IT services companies, consulting firms, business process outsourcing providers, and professional service organisations continued to strengthen their global presence. Demand for digital transformation solutions, cloud services, artificial intelligence integration, financial technology support, and specialised consulting services contributed significantly to export growth.
The services sector has increasingly become one of India’s strongest contributors to foreign exchange earnings, helping offset global volatility affecting merchandise trade.
Growing Global Demand for Indian Technology and Professional Services
India’s services export growth reflects the country’s evolving role in the international digital economy.
Technology-led businesses, global capability centres, engineering services, software development, financial support services, and research operations continued expanding during the year. International companies increasingly relied on Indian firms for cost-efficient and high-quality digital solutions.
The rise in outsourcing activity and global demand for skilled technology professionals also strengthened India’s position in the international services market.
Professional services such as legal consulting, accounting support, financial management, and business analytics further contributed to export earnings. The combination of skilled manpower, digital infrastructure, and operational scalability has enabled India to maintain competitiveness in global services trade.
Global Economic Challenges Continue to Impact Trade
India’s export achievement came despite persistent disruptions in the global trade environment.
Several major economies experienced slower growth during FY26 due to inflationary pressures, tight monetary policies, geopolitical tensions, and weakening consumer demand. Ongoing international conflicts and trade disruptions also created uncertainty across shipping routes and supply chains.
Commodity price fluctuations and currency volatility added further pressure on exporters worldwide. Despite these challenges, India managed to sustain export growth by leveraging its diversified export base and strengthening its services-led trade expansion.
Officials noted that India’s balanced export structure, with contributions from both manufacturing and services, helped cushion the impact of global economic stress.
Services Sector Becoming Central to India’s Trade Strategy
The latest export figures also highlight the increasing importance of services trade in India’s broader economic strategy.
Over the past few years, services exports have steadily gained prominence due to rapid digitalisation and the expansion of global technology adoption. India’s expertise in information technology, digital engineering, consulting, and business services has positioned the country as a major global services provider.
Global capability centres established by multinational companies in India have further strengthened export potential by supporting international operations from Indian locations. This ecosystem has contributed to employment generation, technology development, and foreign exchange inflows.
As digital transformation continues across industries globally, India’s services sector is expected to remain a critical contributor to external trade performance.
Conclusion
India’s record export performance of $863.11 billion in FY26 demonstrates the resilience of the country’s external trade sector amid difficult global economic conditions. While merchandise exports remained stable, the services sector emerged as the primary growth driver, supported by strong international demand for IT, consulting, and professional services. The latest figures underline India’s growing importance in global services trade and reflect the strength of its diversified export ecosystem despite ongoing geopolitical and economic uncertainties.
Summary
India registered its highest-ever annual export performance in FY26, with total exports of goods and services reaching $863.11 billion. The latest figures released by the commerce ministry indicate steady growth despite global economic uncertainty, geopolitical disruptions, and slowing international demand. While merchandise exports remained resilient, the services sector emerged as the primary growth engine, supported by strong demand for IT services, consulting, business support solutions, and professional services. India’s expanding role in global services trade, along with stable manufacturing exports, contributed to the record-breaking export performance during the financial year.
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