India's exports hit record $863 bn in FY26, up 4.6% despite global turmoil
Synopsis
Despite US tariff turbulence and a Middle East conflict that shut the Strait of Hormuz, India's exports hit a record $863.11 billion in FY26 — powered by a services sector that crossed $421 billion for the first time. Early April data showing 20% year-on-year growth suggests the momentum is accelerating, not fading.
Key Takeaways
India's total exports reached a record $863.11 billion in FY2025-26 , a 4.6% rise over the previous year.
Services exports hit a lifetime high of $421.32 billion , growing 8.71% year-on-year.
Merchandise exports grew a modest 0.93% to $441.78 billion amid shipping disruptions.
Exports in the first three weeks of April 2026 rose over 20% year-on-year, led by petroleum products and electronics.
The Strait of Hormuz closure has boosted demand for Indian petroleum exports as Gulf supply is disrupted.
India's total exports of merchandise and services surged 4.6 per cent to a record high of $863.11 billion in financial year 2025-26, up from $825.26 billion in the previous fiscal year, according to the latest figures compiled by the Ministry of Commerce and Industry. The milestone was achieved despite headwinds from US tariff disruptions, geopolitical tensions, and shipping lane closures.
Merchandise and Services: A Split Picture
Merchandise exports posted a modest 0.93 per cent growth to $441.78 billion in FY26, up from $437.70 billion in FY25, in what officials described as a difficult year marked by disruptions in ship movements and demand uncertainties in foreign markets. Services exports, however, outperformed significantly, recording a robust 8.71 per cent growth to reach a lifetime high of $421.32 billion, up from $387.55 billion in the previous financial year. The services surge reflects sustained global demand for India's IT services, business process solutions, and professional expertise.
April Momentum: 20% Year-on-Year Jump
The growth story has carried into the new financial year. Overall exports rose by over 20 per cent year-on-year during the first three weeks of April 2026, compared to the same period a year earlier, according to a statement issued by the Ministry of Commerce and Industry on 30 April. The standout performers were petroleum products and electronic goods, the ministry noted.
Strait of Hormuz Disruption Boosts Petroleum Exports
India's coastal refineries have seen increased demand for petroleum products such as diesel and jet fuel, reportedly linked to supply disruptions caused by the closure of the Strait of Hormuz — a critical chokepoint through which Gulf countries route a major share of their exports. The disruption has triggered a rise in prices of both crude oil and petroleum products in global markets, inadvertently benefiting Indian refiners. Commerce and Industry Minister Piyush Goyal acknowledged that export consignments to West Asia are being routed through alternative channels because the Strait of Hormuz remains
Point of View
Meanwhile, is largely an accident of geopolitics — the Strait of Hormuz closure is a windfall, not a policy win. The real test will be whether India can convert the April momentum in electronics, driven by Apple's manufacturing push, into a durable merchandise export story that reduces dependence on commodity price swings and services alone.
NationPress
12 May 2026
Frequently Asked Questions
What is India's total export figure for FY2025-26?
India's total exports of merchandise and services reached a record $863.11 billion in FY2025-26, a 4.6% increase over the $825.26 billion recorded in FY2024-25, according to the Ministry of Commerce and Industry.
How did India's services exports perform in FY26?
Services exports recorded a robust 8.71% growth to hit a lifetime high of $421.32 billion in FY26, up from $387.55 billion the previous year, driven by strong global demand for India's IT and business services.
Why did India's petroleum exports rise in April 2026?
The closure of the Strait of Hormuz disrupted Gulf country exports, increasing global demand for Indian petroleum products such as diesel and jet fuel from coastal refineries. The supply disruption also pushed up global crude oil and petroleum product prices.
What did Commerce Minister Piyush Goyal say about the export outlook?
Minister Piyush Goyal stated there is 'tremendous enthusiasm among domestic exporters' despite the war in West Asia, and that free trade agreements finalised by India would give a significant boost to domestic industry. He added that export consignments to West Asia are being routed through alternative channels due to Strait of Hormuz challenges.
Which products led India's export growth in April 2026?
Petroleum products and electronic goods were the major drivers of India's over 20% year-on-year export growth in the first three weeks of April 2026, according to the Ministry of Commerce and Industry.
