India’s Exports Rise 13.16% to $316.42 Billion in April–July 2026-27, Merchandise Shipments Jump 17%

India’s external trade recorded strong growth during the first four months of the 2026-27 financial year, with combined merchandise and services exports estimated at US$316.42 billion during April–July 2026-27, up 13.16% from US$279.63 billion in the corresponding period last year.

The latest trade estimates released by the Ministry of Commerce and Industry show particularly strong momentum in merchandise exports. Goods exports during April–July rose 17.04% to US$173.78 billion, compared with US$148.48 billion during the same period of 2025-26.

India’s non-petroleum exports also remained robust, rising 12.79% from US$127.32 billion to US$143.61 billion. Excluding both petroleum and gems and jewellery, exports increased from US$118.27 billion to US$134.02 billion, indicating that the expansion was spread across several manufacturing and value-added export categories.

July Merchandise Exports Surge to $44.24 Billion

The momentum strengthened further in July. Merchandise exports reached US$44.24 billion in July 2026, compared with US$36.98 billion a year earlier, representing growth of about 19.6%.

Combined merchandise and services exports during July were estimated at US$80.14 billion, up 13.31% from US$70.72 billion in July 2025.

The strongest export growth came from petroleum products, electronics, engineering goods, chemicals and textile-related products.

Petroleum product exports increased 67.64%, rising from US$4.13 billion in July 2025 to US$6.92 billion in July 2026.

Electronics continued to emerge as one of India’s fastest-growing export sectors. Electronic goods exports surged 57.40% to US$5.92 billion, compared with US$3.76 billion a year earlier.

Engineering goods, one of India’s largest manufactured export categories, recorded growth of 17.71%, increasing from US$10.40 billion to US$12.24 billion.

Exports of organic and inorganic chemicals increased 14.39% to US$2.80 billion, while cotton yarn, fabrics, made-ups and handloom products rose 8.40% to US$1.11 billion.

Several other sectors also reported strong year-on-year growth. Iron ore exports rose 78.35%, meat, dairy and poultry products increased 40.84%, cashew exports grew 25.11%, marine products expanded 17.83%, handicrafts excluding handmade carpets rose 15.55%, and plastics and linoleum exports increased 11.01%.

Electronics Strengthens India’s Export Diversification

The sharp rise in electronic goods exports is particularly significant because it indicates continued diversification of India’s merchandise export basket beyond traditional sectors.

Electronics exports of US$5.92 billion during July placed the sector among the country’s most important drivers of export expansion alongside petroleum and engineering products. The trend reflects India’s growing manufacturing capacity in electronics and its increasing integration with global supply chains.

At the same time, the rise in non-petroleum and non-gems and jewellery exports suggests that India’s export growth is not dependent solely on volatile commodity prices or precious metals.

Non-petroleum and non-gems and jewellery exports reached US$35 billion during July 2026, compared with US$30.47 billion in July 2025.

Services Continue to Generate Large Trade Surplus

India’s services sector continued to provide an important counterweight to the merchandise trade deficit.

Services exports during April–July 2026-27 are estimated at US$142.64 billion, compared with US$131.15 billion during the corresponding period last year. Services imports were estimated at US$73.47 billion.

As a result, India generated an estimated services trade surplus of US$69.17 billion during the four-month period, compared with US$64.35 billion a year earlier.

For July alone, services exports are estimated at US$35.89 billion, while services imports are estimated at US$18.94 billion.

The government has clarified that July services figures are estimates because the latest services-sector data released by the Reserve Bank of India currently covers June 2026.

Imports Rise Alongside Expanding Trade

India’s rapidly expanding trade activity was also accompanied by higher imports.

Combined merchandise and services imports during April–July 2026-27 reached an estimated US$365.85 billion, rising 17.28% from US$311.94 billion during the corresponding period last year.

Merchandise imports increased from US$245.14 billion to US$292.38 billion, resulting in a merchandise trade deficit of US$118.60 billion, compared with US$96.66 billion in April–July 2025-26.

For July, merchandise imports stood at US$76.22 billion, against US$64.86 billion in July 2025.

The overall merchandise-and-services trade deficit for July was estimated at US$15.03 billion, while the cumulative deficit for April–July stood at US$49.43 billion.

China, Singapore and Emerging Markets Record Strong Export Growth

India also recorded strong export growth across several major and emerging markets.

Among destinations showing the largest positive change in export value during July, exports to the United States rose 12.85%, while shipments to China increased 64.57%. Exports to Singapore grew 83.70%, Malaysia 73.03%, and Kenya recorded growth of 151.41%.

During April–July 2026-27, exports to Singapore rose 97.11%, China 35.97%, South Africa 69.75%, Sri Lanka 111.76%, and Tanzania 131.20%.

Imports also increased sharply from several major suppliers. During July, imports from Russia rose 83.85%, China 34.42%, the United States 18.11%, Taiwan 111.30%, and Oman 150.36%.

Broad-Based Growth Provides Positive Signal for Indian Trade

The April–July figures point to a broad-based expansion of India’s export sector, with merchandise exports growing faster than overall exports and strong gains appearing across electronics, engineering, chemicals, petroleum products, marine products and several labour-intensive industries.

The 17.04% expansion in merchandise exports, combined with nearly 13% growth in non-petroleum exports, is especially important because it indicates that India’s export momentum extends beyond oil-related trade.

However, rapidly rising merchandise imports have widened the goods trade deficit. India’s large services surplus continues to offset a substantial portion of that gap.

With combined exports already reaching US$316.42 billion during the first four months of 2026-27, the trajectory of electronics, engineering goods and other manufactured products will be crucial in determining whether India can sustain the present pace of export growth through the remainder of the financial year.

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Source: Ministry of Commerce and Industry, Government of India / Press Information Bureau, August 13, 2026.

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