India's Exports Rise 4.33% to $634.26 Billion in April-December FY26
India's combined merchandise and services exports grew 4.33% to $634.26 billion during April-December FY26, up from $607.93 billion in the same period last year. The Commerce Ministry projects merchandise exports could exceed $450 billion and services exports $400 billion by fiscal year-end. Smartphones led export growth at 44% YoY, with the US showing 200% growth as the top destination. Despite export growth, the trade deficit widened beyond $25 billion for the nine-month period.
*this image is generated using AI for illustrative purposes only.
India's merchandise and services exports demonstrated robust growth during the first nine months of FY26, reaching $634.26 billion compared to $607.93 billion in the corresponding period of the previous fiscal year. This represents a growth rate of 4.33%, even as the country's trade deficit expanded beyond $25 billion for the April-December period.
Export Performance and Projections
The Commerce Ministry's data suggests strong momentum in India's external trade performance. Based on current growth patterns, the ministry indicated that merchandise exports could surpass $450 billion while services exports may exceed $400 billion by the end of the fiscal year.
| Export Category | Projected Annual Target |
|---|---|
| Merchandise Exports | Above $450 billion |
| Services Exports | Above $400 billion |
Key Export Destinations
Several major trading partners recorded substantial growth in import values from India during the April-December FY26 period. The data reveals significant expansion across diverse geographical markets.
| Country | Growth Rate (%) |
|---|---|
| US | 9.75% |
| China | 36.68% |
| UAE | 7.49% |
| Spain | 53.33% |
| Hong Kong | 25.75% |
Import Sources and Trade Flows
India's import patterns during the same period showed increased inflows from key trading partners, contributing to the widening trade deficit.
| Import Source | Growth Rate (%) |
|---|---|
| China | 13.46% |
| US | 12.85% |
| Hong Kong | 29.28% |
| UAE | 8.26% |
| Ireland | 103.06% |
Smartphone Exports Lead Growth
Smartphones emerged as India's fastest-growing export segment, recording impressive 44% year-on-year growth in the first three quarters of FY26. The US dominated as the largest destination for Indian smartphone exports, showing remarkable 200% year-on-year increase from April to November.
| Market | Growth Rate (%) |
|---|---|
| US | 200% |
| UAE | 62% |
| China | 565% |
| Portugal | 10% |
| Spain | 8% |
Emerging markets including Slovakia, Israel, Latvia, Vietnam, and South Korea also contributed to the smartphone export growth, indicating India's expanding reach in the global electronics market.
Strategic Trade Outlook
The Commerce Ministry emphasized that both merchandise and services exports remain fundamental components of India's external trade strategy. The ministry's approach focuses on continued expansion into new markets while simultaneously strengthening relationships with traditional trade partners, supporting sustained growth in India's export performance despite global economic uncertainties.
17
