India’s total exports of merchandise and services increased 16.66% year-on-year to an estimated $568.84 billion during the first seven months of FY27, compared with $487.59 billion in the corresponding period of the previous financial year. The latest figures released by the Ministry of Commerce and Industry on November 13, 2026, indicate that export activity maintained strong momentum between April and October, supported by growth in manufacturing shipments and services.
October was particularly strong, with merchandise exports reaching a record monthly value of $49.47 billion, up approximately 45% from $34.11 billion in October 2025. Petroleum products, electronic goods, engineering products, gems and jewellery, and chemicals were among the major contributors. However, India’s total imports also increased, leaving the country with a combined merchandise and services trade deficit of $93.35 billion during April–October.
India’s Total Exports Reach $568.84 Billion in April–October FY27
The government’s latest trade data shows that both merchandise and services exports recorded year-on-year growth during the first seven months of FY27.
Merchandise exports increased 21.96% to $309.06 billion, compared with $253.40 billion in April–October FY26. Services exports were estimated at $259.78 billion, up from $234.18 billion, representing growth of approximately 10.93%.
The combined performance pushed India’s total exports to $568.84 billion.
| Export category | April–October FY26 | April–October FY27 | Growth |
|---|---|---|---|
| Merchandise exports | $253.40 billion | $309.06 billion | 21.96% |
| Services exports | $234.18 billion | $259.78 billion | 10.93% |
| Total exports | $487.59 billion | $568.84 billion | 16.66% |
The figures show that merchandise exports grew faster than services exports during the reporting period. Manufacturing and commodity-related shipments therefore played an important role in the overall expansion.
The government has also highlighted market diversification and improved access to international markets through trade agreements as important elements of India’s export strategy.
October Merchandise Exports Hit a Record $49.47 Billion
October 2026 delivered a particularly strong performance for India’s merchandise exporters.
Goods exports increased to $49.47 billion from $34.11 billion in October 2025, representing growth of approximately 45.06%. The Commerce Ministry described the figure as the highest monthly merchandise export value recorded by India.
Combined merchandise and services exports were estimated at $89.99 billion during October, compared with $69.27 billion a year earlier. This represented year-on-year growth of 29.90%.
| October trade indicator | October 2025 | October 2026 | Growth |
|---|---|---|---|
| Merchandise exports | $34.11 billion | $49.47 billion | 45.06% |
| Merchandise imports | $76.69 billion | $89.35 billion | 16.51% |
| Total exports | $69.27 billion | $89.99 billion | 29.90% |
| Total imports | $94.42 billion | $110.07 billion | 16.58% |
October’s export performance was supported by higher shipments across several industrial categories. However, the increase in merchandise exports did not eliminate the country’s trade deficit because imports remained substantially higher than exports.
Petroleum, Electronics and Engineering Goods Drive Export Growth
Several major product categories recorded significant export increases during October.
Petroleum products registered the strongest growth among the major categories highlighted by the Commerce Ministry. Exports increased 140.21% to $8.89 billion from $3.70 billion in October 2025.
Electronic goods exports rose 62.70% to $6.64 billion from $4.08 billion. Engineering goods exports increased 36.01%, reflecting continued demand for India’s manufactured industrial products.
Other categories, including gems and jewellery and organic and inorganic chemicals, also contributed to the expansion.
| Export category | October 2025 | October 2026 | YoY growth |
|---|---|---|---|
| Petroleum products | $3.70 billion | $8.89 billion | 140.21% |
| Electronic goods | $4.08 billion | $6.64 billion | 62.70% |
| Engineering goods | — | — | 36.01% |
| Gems and jewellery | — | — | 40.06% |
| Organic and inorganic chemicals | — | — | 36.20% |
The growth in electronic goods is particularly relevant to India’s manufacturing ambitions. The country has been working to expand domestic electronics production and increase its participation in global supply chains.
Engineering goods also remain an important export category, covering products such as industrial machinery, automotive components, electrical equipment and other manufactured goods.
The strong increase in petroleum exports, meanwhile, reflects the importance of refined petroleum products in India’s merchandise trade. Changes in international energy prices and export volumes can influence the value of these shipments.
India’s Imports Also Increase, Widening the Trade Deficit
Despite strong export growth, India’s overall import bill continued to rise during the first seven months of FY27.
Total imports of merchandise and services reached an estimated $662.19 billion during April–October, compared with $570.84 billion in the same period of FY26. This represented an increase of 16%.
Merchandise imports increased to $527.21 billion from $452.86 billion, while services imports rose to $134.98 billion from $117.98 billion.
As a result, India’s combined merchandise and services trade deficit widened to $93.35 billion, compared with $83.25 billion a year earlier.
| Trade indicator | April–October FY26 | April–October FY27 |
|---|---|---|
| Total exports | $487.59 billion | $568.84 billion |
| Total imports | $570.84 billion | $662.19 billion |
| Trade balance | -$83.25 billion | -$93.35 billion |
The merchandise trade deficit alone reached $218.15 billion during April–October FY27, compared with $199.46 billion in the corresponding period last year.
Higher imports of energy, gold, electronics components and other goods can increase the merchandise deficit even when exports are expanding.
October illustrated this pressure. Merchandise imports reached $89.35 billion, while merchandise exports stood at $49.47 billion, leaving a goods trade deficit of $39.88 billion.
Services Exports Provide a Significant Trade Surplus
India’s services sector continued to provide an important contribution to the country’s external trade position.
Services exports during April–October FY27 were estimated at $259.78 billion, compared with $234.18 billion a year earlier. Services imports stood at $134.98 billion, resulting in a services trade surplus of $124.80 billion.
This surplus helped offset part of the merchandise trade deficit.
India’s services exports include information technology and business-process services, financial services, consulting, telecommunications and other professional activities.
The services trade balance is particularly important because India imports substantial quantities of crude oil, electronics, machinery and other goods. Revenue earned from overseas services customers provides an additional source of foreign exchange.
One important qualification is that the October services figures are estimates. The latest available Reserve Bank of India services-sector data at the time of the Commerce Ministry release covered September 2026.
Exports to the United States and Other Markets Expand
India’s export growth also extended across several international markets.
The United States remained India’s largest export destination. Shipments to the country increased to $59.52 billion during April–October FY27, compared with $51.99 billion in the corresponding period last year, representing growth of approximately 14.48%.
Exports to Singapore increased 107.5%, while shipments to Malaysia rose 106.87%. Exports to China increased 37.71%, and shipments to Spain grew 88.38%.
These figures indicate that Indian exporters are expanding shipments across both established and emerging markets.
Trade agreements with countries and economic blocs such as the United Kingdom, Australia, the UAE and New Zealand are also part of India’s broader effort to improve market access and diversify export destinations.
However, trade performance remains influenced by global demand, tariff policies, currency movements, shipping costs and geopolitical developments.
India’s $1 Trillion Export Ambition
The latest export figures provide momentum towards India’s longer-term ambition of reaching $1 trillion in annual exports.
India recorded combined merchandise and services exports of approximately $863.1 billion in FY26. Reaching $1 trillion would require continued growth in both manufacturing shipments and services exports.
The government’s strategy includes strengthening domestic manufacturing, improving logistics infrastructure, supporting small exporters and expanding access to international markets through free trade agreements.
Electronics, engineering goods, pharmaceuticals, chemicals, textiles, petroleum products and business services are among the sectors expected to contribute to future export expansion.
Nevertheless, maintaining the current growth rate will depend on external market conditions and India’s ability to remain competitive in international markets.
The Bigger Picture
India’s 16.66% export growth during April–October FY27 highlights the strength of its merchandise and services sectors. The record October merchandise export figure and higher shipments of petroleum products, electronics and engineering goods indicate that manufacturing exports are gaining momentum. Services exports continue to provide a substantial trade surplus, helping cushion the impact of India’s large merchandise import bill.
However, rising exports have not yet translated into a narrower overall trade deficit. Imports grew 16% during the first seven months, leaving the combined trade deficit at $93.35 billion. India’s next challenge is therefore not only to increase exports but also to strengthen domestic production capabilities and reduce excessive dependence on imported goods in strategically important sectors.
Looking Ahead
The performance of electronics, engineering goods, petroleum products and other manufactured exports will remain important for India’s trade outlook during the remaining months of FY27. Exporters will also need to navigate changing tariff policies, international competition and demand conditions in major markets such as the United States, Europe and Asia. The government’s trade agreements and export-support measures could provide additional opportunities, particularly for manufacturers and smaller businesses.
The next several months will show whether India can sustain the strong export growth recorded in October and move closer to its $1 trillion annual export ambition. Investors and policymakers will also monitor import growth and the merchandise trade deficit, as a stronger external trade position requires export expansion to be supported by competitive domestic manufacturing and resilient services earnings.
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