India’s cumulative exports (merchandise and services) reached US$ 720.76 Billion during April–January 2025-26, growing 6.15% year-on-year, according to official data released by Ministry of Commerce & Industry on February 16, 2026.
The growth was mainly driven by strong services exports and steady gains in engineering goods, petroleum products, and agricultural-related shipments.
However, faster growth in imports pushed the total imports to US$ 823.41 Billion, widening the overall trade gap despite rising exports.
The data matters for policymakers, investors, exporters, and currency markets as it reflects India’s external trade strength and global demand trends.
What Happened in India’s Export and Import Data for January 2026 and FY26 (Apr–Jan)
India’s total exports (merchandise and services combined) stood at US$ 80.45 Billion in January 2026, registering a strong growth of 13.17% compared to January 2025.
Meanwhile, total imports surged to US$ 90.83 Billion in January 2026, rising 18.76% year-on-year, indicating higher domestic demand and external dependency.
On a cumulative basis, exports during April–January 2025-26 reached US$ 720.76 Billion, compared to US$ 679.02 Billion in the same period last year.
Total imports during the same period rose to US$ 823.41 Billion from US$ 772.85 Billion (approx.), showing a 6.54% increase.
Why Did India’s Export Growth Happen in FY26
The export growth was supported by key sectors such as engineering goods, petroleum products, marine products, and iron ore.
Engineering goods exports rose 10.37% to US$ 10.40 Billion in January 2026 from US$ 9.42 Billion a year ago, making it one of the largest contributors.
Petroleum product exports increased by 8.55%, while meat, dairy, and poultry products exports jumped 17.92% year-on-year.
Marine product exports grew 13.29% and iron ore exports recorded a sharp rise of 31.54%, indicating strong global commodity demand.
Bigger Context Behind India’s Merchandise and Services Trade Performance
Merchandise exports in January 2026 stood at US$ 36.56 Billion, slightly higher than US$ 36.34 Billion in January 2025.
However, merchandise imports surged to US$ 71.24 Billion, up from US$ 59.77 Billion, significantly widening the monthly merchandise trade deficit.
For April–January FY26, merchandise exports were US$ 366.63 Billion versus US$ 358.75 Billion last year, showing a modest growth of 2.20%.
Non-petroleum exports reached US$ 320.94 Billion, rising 4.89% from US$ 305.98 Billion, indicating broader export strength beyond energy products.
How Services Exports Strengthened India’s Overall Trade Numbers
Services exports remained the biggest growth driver in India’s external trade.
Services exports in January 2026 were estimated at US$ 43.90 Billion, compared to US$ 34.75 Billion in January 2025.
Cumulatively, services exports during April–January 2025-26 reached US$ 354.13 Billion, up from US$ 320.28 Billion last year.
This resulted in a services trade surplus of US$ 180.58 Billion, significantly higher than US$ 153.56 Billion in the previous year.
How Rising Imports and Trade Deficit Impact India’s Economy and Markets
Despite export growth, the merchandise trade deficit widened to US$ 283.23 Billion during April–January 2025-26, compared to US$ 247.38 Billion in the same period last year.
Higher imports of goods and industrial inputs reflect strong domestic consumption and infrastructure activity.
Imports from key sources such as China, UAE, USA, Hong Kong, and Singapore recorded notable growth, highlighting India’s reliance on global supply chains.
At the same time, imports of pulses, iron and steel, coal, and chemicals declined, indicating shifts in domestic demand and inventory cycles.
Top Export Destinations and Sectoral Growth in India’s Export Data 2026
Major export destinations showing strong growth in January 2026 included UAE (29.27%), China (55.65%), Hong Kong (98.72%), Netherlands (20.47%), and Italy (32.1%).
For April–January FY26, China, USA, UAE, Spain, and Hong Kong remained the top growth markets for Indian exports.
Sector-wise, strong growth was seen in other cereals (88.49%), coffee (36.03%), iron ore (31.54%), and engineering goods (10.37%).
Pharmaceuticals, electronic goods, and processed food items also recorded positive export growth, reflecting diversified export strength.
What Happens Next for India’s Trade Outlook and Export Growth
India’s export outlook will depend on global demand, commodity prices, and geopolitical trade conditions in 2026.
Continued strength in services exports is likely to support overall trade stability even if merchandise trade deficit remains elevated.
If engineering goods, petroleum products, and agricultural exports maintain momentum, India could see stronger full-year export growth despite rising imports.
Frequently Asked Questions
1. How much did India’s total exports grow in April–January 2025-26?
India’s total exports grew 6.15% to US$ 720.76 Billion during April–January 2025-26 compared to US$ 679.02 Billion a year earlier.
2. What drove India’s export growth in January 2026?
Key drivers included engineering goods, petroleum products, marine products, meat and dairy products, and iron ore exports.
3. Did India’s trade deficit increase in FY26?
Yes, the merchandise trade deficit widened to US$ 283.23 Billion during April–January 2025-26 due to faster import growth.
4. Why are services exports important for India’s economy?
Services exports generate a large trade surplus and help offset the merchandise trade deficit, supporting overall external balance.
Conclusion
India’s export data for FY26 (April–January) shows steady growth led by services and key industrial sectors, but rising imports continue to widen the trade deficit. The balance between strong services exports and high merchandise imports will remain crucial for India’s trade stability and currency outlook in the coming months.
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