India’s export sector has started the new financial year on a strong note, with exports growing by around 15% during the first four months of the current financial year. The improvement has strengthened the government’s confidence that India can work towards its ambitious target of achieving $1 trillion in total exports during 2026-27.
Commerce and Industry Minister Piyush Goyal highlighted the export performance while speaking at the Bharatiya Vyapar Mahotsav 2026 in New Delhi. He said the growth seen between April and July shows that Indian businesses are continuing to find opportunities in overseas markets despite uncertainty in the global economy.
India had recorded total exports of around $863 billion in 2025-26, including approximately $442 billion in merchandise exports and $421 billion in services exports. According to Goyal, exports have increased by nearly 73% over the past six years, reflecting the growing role of Indian companies in international trade.
The move from $863 billion to $1 trillion, however, will not be easy. The government itself has acknowledged that the target requires a significant increase in shipments during the rest of the financial year. Global trade is facing several challenges, including geopolitical tensions, changing tariff policies, uncertain demand and disruptions in international supply chains.
Still, the 15% growth recorded in the first four months gives exporters and policymakers some reason for optimism. Stronger overseas demand can support manufacturing, services, employment and investment across several parts of the Indian economy.
One of the important factors behind India’s export strategy is the expansion of its network of free trade agreements (FTAs). Goyal said India has concluded nine FTAs over the past four years. These agreements cover economies with a combined GDP of around $60 trillion and are intended to give Indian businesses better access to international markets.
For Indian manufacturers, easier access to foreign markets could create opportunities to increase production and expand their customer base. Industries such as electronics, pharmaceuticals, engineering goods, textiles, chemicals, automobiles and other manufactured products are expected to remain important contributors to India’s merchandise exports. Services, particularly information technology and other professional services, will also remain a major part of the country’s export story.
At the same time, India needs to keep an eye on imports. Data for the April-June period showed that exports increased by about 15.92% to $129.32 billion, while imports rose faster, by around 19.89% to $216.18 billion. The faster growth in imports can put pressure on the trade balance if the trend continues.
This makes the quality and sustainability of export growth particularly important. Simply increasing shipment volumes may not be enough. Indian businesses will need to remain competitive on price, quality, delivery times and product standards while meeting the requirements of different international markets.
The government is also encouraging exporters to think beyond traditional markets and products. Expanding India’s presence in new regions could help reduce dependence on a limited number of trading partners and provide businesses with more opportunities when demand in individual markets weakens.
The $1 trillion target also carries broader economic importance. Higher exports can bring more foreign currency into the country, support industrial activity and strengthen India’s position in global supply chains. For small and medium-sized businesses, access to international customers can also create opportunities to scale beyond the domestic market.
However, achieving the target will depend on how the global economy develops during the remainder of the year. Trade tensions, commodity prices, freight costs, currency movements and geopolitical developments could all affect India’s export performance.
For now, the early numbers are encouraging. With exports growing around 15% in the first four months, the government believes India has a realistic opportunity to move closer to the $1 trillion mark. The challenge will be maintaining that momentum for the rest of 2026-27 while helping Indian companies become more competitive and expand their reach across global markets.
