India’s merchandise and services exports rose 15.55 percent year-on-year to USD 399.27 billion in the April-August 2026 period of the current financial year, commerce ministry data released this week shows, underlining continued export resilience despite mounting global tariff headwinds. Merchandise exports alone climbed 17.85 percent to USD 215.91 billion during the five-month period.
Within merchandise exports, non-petroleum shipments rose 14.39 percent to USD 180.61 billion, indicating that the growth was broad-based rather than driven by oil-linked re-exports. Services exports contributed USD 183.36 billion to the overall tally, reflecting continued strength in India’s IT, business process and professional services sectors even as goods trade faces uncertainty from US tariff actions and global demand fluctuations.
Which Sectors Are Driving India’s Export Growth in FY27?
Non-petroleum merchandise exports, which grew close to 15 percent, point to sustained demand for Indian engineering goods, pharmaceuticals, electronics and textiles even as several trading partners raise tariff barriers. Officials at the Ministry of Commerce and Industry have highlighted electronics and engineering exports as particular bright spots, supported by production-linked incentive schemes, while services exports continue to be anchored by IT and IT-enabled services demand from the United States and Europe.
What Do Trade Bodies and Economists Say?
The Federation of Indian Export Organisations has pointed to the export numbers as evidence that Indian exporters are adapting to a more difficult external environment, though it has also flagged the risk that escalating US tariffs, including the threatened measures tied to Russian oil purchases, could weigh on merchandise export momentum in the second half of the financial year. Economists note that maintaining double-digit export growth will depend heavily on how trade negotiations with the United States and the European Union progress in the coming months.
Market and Trade Reaction
The trade data landed alongside a mixed session for Indian equity markets, with the Sensex and Nifty opening lower amid global cues following the US Federal Reserve’s rate move, though export-oriented sectors drew some investor attention on the back of the strong five-month trade performance. Currency markets showed limited immediate reaction, with the rupee’s trajectory more closely tied to crude oil prices and prospective US tariff decisions than to the trade data itself.
What Happens Next?
The Ministry of Commerce and Industry will release full August trade data, including the goods and services trade balance, in the coming weeks, giving a clearer picture of whether export momentum can be sustained into the second half of FY27. Exporters and industry bodies will be watching closely for developments on the India-US bilateral trade agreement and the India-EU Free Trade Agreement, both of which carry material implications for the trajectory of India’s merchandise exports over the rest of the financial year.
Frequently Asked Questions
How much did India’s exports grow in April-August FY27?
India’s combined merchandise and services exports rose 15.55 percent year-on-year to USD 399.27 billion in the April-August 2026 period, according to commerce ministry data.
What is driving India’s merchandise export growth?
Non-petroleum merchandise exports, up 14.39 percent to USD 180.61 billion, are being driven by engineering goods, electronics, pharmaceuticals and textiles, supported by production-linked incentive schemes.
What risks do India’s exports face in the rest of FY27?
Trade bodies have flagged the risk of escalating US tariffs, including measures tied to India’s Russian oil purchases, as a potential drag on merchandise export growth in the second half of the financial year.
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