India exports hit $860B in FY26, services drive growth

The headline number markets are discussing

India’s combined merchandise and services exports rose to a record $160.09 billion in FY 2025-26, according to official trade data released on 15 April 2026. The total was up 4.22% from $125.26 billion in FY 2024-25. On social media, the discussion has focused on how the record was achieved even as goods shipments saw only modest growth. The data also highlights a clear split between momentum in services versus pressure points in merchandise trade. Commerce Ministry commentary and shared clips of briefings have been widely reposted, with investors reading the numbers as a resilience signal amid global uncertainties. At the same time, many posts flagged the widening deficit as the key counterpoint to the export milestone. The takeaway from the release is that the overall record was driven mainly by services, with non-petroleum goods exports providing steadier support. The ministry’s dataset is now being used as a reference point for FY 2026-27 expectations.

FY 2025-26 vs FY 2024-25: a quick data check

The FY 2025-26 export record sits alongside a strong rise in imports, which is central to the debate online. Overall imports (merchandise plus services) were reported at $179.40 billion in FY 2025-26, higher than $119.92 billion in FY 2024-25. Merchandise imports rose to $174.98 billion from $121.20 billion, a 7.46% increase in the ministry’s comparison table. Merchandise exports, in contrast, increased only marginally to $141.78 billion from $137.70 billion, up 0.93%. Services exports grew to $118.31 billion from $187.55 billion, up 7.94%, and that differential is why services dominated the narrative. Several posts also pointed out that the record export number does not automatically mean the external balance improved. The reported overall trade deficit (goods plus services) widened to $119.30 billion from $14.66 billion in FY 2024-25 as imports rose faster than exports. The data is being read as a picture of demand strength at home and competitiveness in services, alongside continued vulnerability in the goods-import bill.

Services exports: the clear engine of the record

Services exports in FY 2025-26 were estimated at $118.31 billion, up 7.94% over FY 2024-25. In the online conversation, this is repeatedly framed as the key reason the combined export figure could reach a new high despite goods headwinds. The reported services trade surplus was $113.89 billion, which many users cited as an offset to the merchandise deficit. Ministry notes and reposted summaries also described services as “booming” relative to goods, which helped anchor the full-year resilience. The services number is also close to merchandise exports in size, underlining the shift in the composition of India’s external trade. Investors tracking listed sectors linked to services exports have focused on the durability of that growth through global uncertainty. The official release does not break down services categories in the shared context, so the discussion has stayed at the headline level. Still, the data point that services grew faster than overall exports is central to why the FY 2025-26 outcome is being positioned as structurally supportive.

Merchandise exports: modest growth, but composition matters

Merchandise exports were $141.78 billion in FY 2025-26, only 0.93% higher than the prior year. Social posts used this as evidence that global demand and commodity price volatility continue to cap goods growth. The more positive read came from non-petroleum exports, which rose 3.62% to $187.88 billion from $174.32 billion. The release also highlighted non-petroleum and non-gems and jewellery exports at $159.67 billion, above $144.50 billion in FY 2024-25. Commentators have treated this as a signal that diversified manufacturing and value-added categories held up better than petroleum-linked trade flows. At the same time, the absolute expansion in total goods exports was limited, which is why users kept returning to services as the real driver. The data does not show broad-based acceleration across all goods categories, but it does show that non-petroleum exports improved. For market participants, this mix is important because it shapes which export-facing segments appear more resilient.

Trade deficit widens: the main caution flag in the data

The merchandise trade deficit for FY 2025-26 was reported at $133.19 billion, wider than $183.50 billion in FY 2024-25. On top of that, the overall trade deficit (goods plus services) widened to $119.30 billion from $14.66 billion. The shared context attributes some deficit pressure to imports rising faster than exports, with gold and silver adding pressure. Many posts interpreted the gap as a reminder that record exports can coincide with a larger import bill, especially when domestic demand and industrial activity are strong. FIEO commentary in the context also noted global uncertainties and supply chain disruptions, making the deficit trend a point to watch. The import increase itself has been presented in two ways: as a sign of economic activity, and as a macro risk if it persists without corresponding export acceleration. The official figures show imports up across the full year, which explains why the deficit widened even with a record export total. For investors, deficit trends matter because they affect macro assumptions that can influence rates, currency expectations, and sector leadership. The FY 2025-26 report therefore landed as a mix of a milestone headline and a cautionary sub-plot.

March 2026 finish and the FY26 first-half momentum

The year closed with a notable month for merchandise shipments, with March 2026 recording $18.92 billion in merchandise exports, the highest monthly figure of FY26 in the shared context. Separately, FIEO notes in the discussion said total exports in March 2026 reached $14.11 billion. Earlier in the year, momentum was visible in the first half as well, with exports during April to September 2025 reaching $118.91 billion, up 5.86% year on year. Posts highlighted that both the first and second quarters of FY 2025-26 recorded record highs for those quarters despite a challenging global environment. Merchandise exports in April to September 2025 rose 2.90% to $119.88 billion. The first-half record is being used online to argue that the export cycle was not solely a year-end spike. It also frames the FY 2025-26 outcome as a continuation of FY 2024-25, when total exports reached $125.25 billion with 6.05% annual growth. In practical terms, the timeline suggests exports stayed firm through the year, even as merchandise growth remained moderate.

Which export categories were cited as drivers

For FY 2025-26, the context mentions petroleum products and engineering goods as key contributors, with additional support from electronics, pharmaceuticals, minerals, cereals, and handicrafts. It also states that minerals including mica, coal, and processed ores grew 11.27%, and handicrafts (excluding handmade carpets) grew 8.51%. Engineering goods recorded a 1.13% increase and were described as maintaining their position as a major export category. The context also includes a claim that petroleum products exports rose 5.88% to $1.18 billion, which is part of the shared discussion. For the first half of FY 2025-26, the Commerce Ministry year-end review cited strong sectoral growth, including electronic goods (41.94%), engineering goods (5.35%), drugs and pharmaceuticals (6.46%), marine products (17.4%), and rice (10.02%). Social posts have used these sector references to argue that export performance was not concentrated in a single pocket. At the same time, the year-end full-year merchandise headline shows that gains in some categories were offset by weakness elsewhere. That is why the discussion often separates category-level strength from the aggregate merchandise growth rate.

What exporters and industry bodies are saying

The Federation of Indian Export Organisations (FIEO) welcomed the FY 2025-26 performance, highlighting the milestone of crossing $160.09 billion in total exports. In the shared quote, FIEO President S. C. Ralhan said crossing $160 billion is a notable achievement amid global uncertainties, supply chain disruptions, and fluctuating demand. The statement framed the result as evidence of the adaptability and strength of Indian exporters. This industry reaction has been reposted alongside the ministry’s tables, helping shape the tone of the conversation. Some posts also referenced a “strategic pivot toward new trade partners,” but the context does not provide a detailed country-wise split. The discussion has therefore stayed focused on the official aggregates, the services-led growth, and the deficit dynamics. In addition, commentary around import strength has been linked to domestic demand and industrial activity, as cited in the shared context. Overall, the industry messaging has been supportive of the milestone while acknowledging the tough external environment.

What to watch next in the data, based on this release

Based on the FY 2025-26 print, the most important watchpoint is whether services can continue to outpace overall export growth. The second watchpoint is whether non-petroleum merchandise exports can sustain their higher growth rate compared with total goods exports. Investors also appear focused on whether the widening deficit stabilises if imports cool, or whether it continues to expand if import growth stays elevated. Monthly merchandise exports will likely be watched closely after March 2026 posted the year’s highest monthly reading for goods. The context also shows that H1 FY 2025-26 was record-setting, so sequential momentum across quarters is now part of the narrative. Category-level trends such as engineering goods, electronics, pharma, minerals, cereals, and handicrafts are likely to remain in focus because they are repeatedly cited as drivers. At the headline level, the FY 2025-26 data sets a new benchmark of $160.09 billion for combined exports. But the same tables also underline that the quality of growth matters, especially when the import bill is rising faster than exports. For markets, that balance between milestone exports and deficit management is likely to stay the core debate until new monthly prints add clarity.