India Targets $1 Trillion in Goods and Services Exports as Trade Growth Accelerates

India has set a target of raising combined exports of goods and services from a record $863.1 billion in FY 2025-26 to $1 trillion in the current financial year, as merchandise exports continue to post strong growth despite a challenging global trade environment.

Union Minister of Commerce and Industry Piyush Goyal said on September 28 that merchandise exports have grown by more than 15% in the first half of the current financial year. The target builds on India’s highest-ever export performance in FY 2025-26, when merchandise exports reached $441.8 billion and services exports stood at $421.3 billion.

Merchandise Exports Maintain Strong Momentum

Official trade data show that cumulative merchandise exports during April-August 2026-27 reached $215.91 billion, compared with $183.21 billion during the same period a year earlier. This represented growth of 17.85%, while total merchandise and services exports during the five-month period rose by an estimated 15.55% to $399.27 billion.

The strongest export drivers included electronics, petroleum products, engineering goods, organic and inorganic chemicals, cotton yarn and related products. Electronics exports were particularly strong in August 2026, rising sharply compared with the same month in the previous year.

Free Trade Agreements Expand Market Access

The government expects recently concluded and operational free trade agreements to play a major role in sustaining export growth. India has been expanding preferential market access through agreements with developed economies while also pursuing wider trade diversification.

The Commerce Ministry is also focusing on district-level export promotion, logistics improvement, MSME participation and sector-specific strategies to increase the competitiveness of Indian goods and services in overseas markets.

India-UAE Trade Adds Momentum

Goyal announced the latest export target after the 14th India-UAE High Level Joint Task Force on Investments in Mumbai. He said bilateral trade between India and the UAE has doubled to around $100 billion under the Comprehensive Economic Partnership Agreement, with both countries now aiming for $200 billion in trade by 2032.

The UAE has already invested around $25 billion in India and is expanding its presence across sectors such as energy, logistics, food security, artificial intelligence, fintech, shipbuilding and space technology. This growing economic relationship provides Indian companies with deeper access to one of the country’s most important trade and investment partners.

MSMEs, Food Processing and Manufacturing Remain Central

The government is placing particular emphasis on increasing exports from MSMEs, agriculture and food processing, which have significant potential to generate employment while expanding India’s presence in global markets.

Goyal has also urged industry to study import trends and identify opportunities for domestic manufacturing and import substitution. Sectors such as electronics, engineering, pharmaceuticals, food processing and marine products are becoming increasingly important to India’s export profile.

India Strengthens Its Global Export Footprint

India’s export performance is becoming broader across both goods and services, supported by stronger manufacturing, improved market access and deeper integration with major trading partners.

The combination of rising merchandise shipments, expanding services exports and wider participation from Indian businesses is strengthening the country’s position in global trade and supporting its longer-term ambition of becoming a larger export-driven economy

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References

Akashvani News — “India sets one trillion dollar export target for goods and services this year,” September 28, 2026.

Press Information Bureau, Ministry of Commerce and Industry — “India’s Exports Scale Record US$ 863.1 Billion in FY 2025-26,” July 28, 2026.

Press Information Bureau, Ministry of Commerce and Industry — Export performance for April-August 2026-27, September 15, 2026.

Press Information Bureau, Ministry of Commerce and Industry — Export promotion strategy and trade agreement updates, 2026.

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