India's cumulative merchandise and services exports for April–October 2026–27 reached an estimated $568.84 billion, registering 16.66% growth over $487.59 billion in the corresponding period of the previous financial year. Industry leaders say the priority now is to convert this strong momentum into sustained, durable export growth.

October Surge Leads the Way

India's merchandise exports surged 45.06% to $49.47 billion in October 2026, with shipments expanding across 43 of the country's top 50 export destinations. The breadth of market gains, spanning both established and emerging economies, has been highlighted by trade bodies as a signal of genuine structural competitiveness rather than a narrowly concentrated rally.

The combined merchandise and services trade deficit narrowed to $20.09 billion in October, down from $25.15 billion a year earlier — a development that analysts say reflects both stronger outbound shipments and moderating import demand.

Engineering Goods: Seven Straight Months of Growth

Engineering goods exports have remained positive for the seventh consecutive month in October during the current fiscal year. The sector recorded exports of $12.74 billion in October 2026, up 36% from $9.37 billion in the same month last year.

Pankaj Chadha, Chairman of EEPC India, called the performance a 'testament to the sustained efforts of the engineering sector and the government,' adding that it 'reflects the industry's growing competitiveness and reinforces India's position in the global manufacturing space.' He cautioned, however, that many structural challenges persist and are 'unlikely to subside in the immediate future.'

What Industry Leaders Are Calling For

SC Ralhan, President of the Federation of Indian Export Organisations (FIEO), underlined the importance of market diversification, urging exporters to 'build on these opportunities through stronger buyer relationships, competitive products and greater utilisation of preferential access under India's Free Trade Agreements (FTAs).'

Ralhan also flagged that affordable export credit, lower transaction costs and efficient logistics will be critical to sustaining momentum — particularly for MSME exporters, who remain more vulnerable to cost pressures and supply chain disruptions than large enterprises.

The Road Ahead

Industry leaders stress that maintaining this trajectory will require consistent competitiveness across both manufacturing and services sectors. Continued government–industry collaboration, timely trade facilitation and effective utilisation of existing trade agreements, they argue, can help turn October's strong performance into durable gains in global market share. The next key test will be whether November and December shipment data sustain the double-digit pace as global demand signals remain mixed.