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Ministry of Commerce & Industry | Department of Commerce | Reserve Bank of India (RBI)
The Ministry of Commerce & Industry report on India’s Foreign Trade notes that cumulative exports (merchandise and services combined) for April-January 2025-26 reached an estimated US$ 720.76 Billion, marking a 6.15% growth over the previous year. Merchandise exports contributed US$ 366.63 Billion, while the services sector—a key driver of growth—is estimated at US$ 354.13 Billion, reflecting a significant 10.57% expansion. In January 2026 alone, total exports grew by 13.17% year-on-year, driven by robust performance in engineering goods, petroleum products, and iron ore. Despite a widening cumulative trade deficit of US$ 102.65 Billion, non-petroleum and non-gems & jewellery exports demonstrated resilient growth, particularly in sectors like meat, dairy, and marine products.
Key Pillars of India’s Foreign Trade (April-January 2025-26)
Service Sector Dominance: Estimating a services trade surplus of US$ 180.58 Billion, providing a vital cushion against the merchandise trade gap.
Industrial Export Resilience: Recording double-digit growth in Engineering Goods (10.37%) and a massive 31.54% spike in Iron Ore exports for January 2026.
Emerging Agri-Export Strength: Achieving significant jumps in Other Cereals (88.49%) and Coffee (36.03%), signaling a successful push toward higher-value agricultural exports.
Market Diversification: Expanding trade footprints in China (38.37% growth), the USA (5.85%), and the UAE (9.56%) during the cumulative ten-month period.
Negative Growth in Sensitive Imports: Observing sharp declines in the import of Pulses (-46.94%) and Iron & Steel (-18.77%), potentially indicating improved domestic capacity or shifting global pricing.
What are “Non-Petroleum, Non-Gems & Jewellery” Exports? Non-petroleum and non-gems & jewellery exports refer to a specific sub-set of merchandise trade that excludes volatile commodities and high-value traditional items like crude oil, gold, and diamonds. By isolating these sectors, economists can track the “core” performance of India’s manufacturing and diversified export base—including textiles, pharmaceuticals, and engineering goods. In January 2026, these core exports reached US$ 30.47 Billion, providing a more accurate reflection of the structural health and global competitiveness of India’s multi-sectoral production capacity.
Policy Relevance
The 6.15% cumulative growth signifies a transition from “Reactive Trade” to “Structural Export Resilience,” where services and engineering goods are decoupling India from global commodity price volatility.
Strategic Impact:
Federal Export Specialization: The 10.37% growth in engineering goods highlights the success of state-led industrial corridors, enabling Gram Panchayats in manufacturing hubs to integrate more deeply into global supply chains.
Standardizing Agri-Logistics: The massive 88.49% jump in cereal exports underscores the importance of the Bharat Forecasting System in helping farmers time their harvests to match global demand peaks.
Managing Trade Arbitrage: The US$ 180.58 Billion services surplus provides the “Sovereign Buffer” needed to manage the imports of specialized metals and GPU hardware required for India’s 22 PetaFLOPS AI infrastructure.
Bypassing Import Bottlenecks: The 18.77% decline in iron and steel imports suggests that domestic “Viksit Bharat” infrastructure projects are successfully sourcing from local producers, reducing foreign exchange leakage.
Scaling Cross-Border Digital Trust: The 10.57% growth in services exports is directly tied to India’s leadership in Privacy-Enhancing Technologies (PETs), ensuring that Indian IT-enabled services (ITES) remain compliant with UK and APEC safety standards.
Follow the full news here: India’s Foreign Trade - January 2026