India's record-breaking export run in FY 2025–26: What's driving the Growth?

A “record pace” year, even though the world was noisy

For India, FY 2025–26 has been less about one huge headline industry and more about services-led growth and resilience in the bread-and-butter sectors. India’s combined exports (goods and services) have continued on a strong path, even though global demand is slowing down, shipping problems are happening, and energy and commodity prices are going up and down. As per India Import Data by Import Globals, the government’s most recent official pictures show that exports are still going strong in FY26 following a record-setting FY25 baseline. In fact, FY26 quarters are still posting the best exports ever for their respective periods.

The most recent scorecard shows where exports are at in FY26 so far.

People usually mean the cumulative run-rate for the current fiscal year when they talk about “record export performance” in FY 2025–26. As per INDIA import shipment data by Import Globals, this is because FY26 is still going on. According to official estimates, exports (goods and services) from April to December 2025 were roughly USD 634.26 billion, which is an increase of about 4.33% from the previous year. During that time, merchandise exports were about $330.29 billion and services exports were about $303.97 billion. This shows how services are becoming more important to the overall number.

Driver #1: The “stable growth” job is being done by services exporters.

As per India Export Data by Import Globals, India can keep recording solid combined export prints even when goods trade gets rough since services, notably IT/ITeS, professional services, and other modern tradables, are a consistent engine. According to official comments on the Economic Survey, India’s strong exports have mostly been due to strong growth in services. This strength continued into FY26, when quarterly performances set records.

In actuality, services exports offer a layer of stability: contracts are more stable than spot shipments, and global companies generally keep investing on digital goods even when demand for other goods is low.

Driver #2: Non-oil manufacturing is continuously growing the base

The good news for goods is less about oil windfalls and more about diversifying away from oil. India’s recent success has been helped by strong growth in non-oil sectors and a growing presence in higher-value manufacturing. As per INDIA customs data by Import Globals, the government says that electronics, medicines, electrical machinery, and cars have been major growth drivers. This shows that India is becoming more competitive in areas where product complexity and supply-chain integration are important.

This is also why “record exports” now appear different from ten years ago: the export basket is changing from cycles that are only tied to commodities to cycles that include both manufacturing and services.

Driver #3: Policy calibration: helping exports without hurting domestic supply

FY 2025–26 also follows a pattern that is common in Indian policy: safeguard availability at home while allowing exports when conditions are right. For instance, in February 2026, the government permitted wheat exports and raised the amount of sugar that could be exported. these actions were meant to help farmers and keep the domestic market stable.

This kind of calibration is important for export performance because it makes it less likely that exporters will have to stop and start, which helps keep a steady supply rhythm, especially for the agricultural and processed food sectors.

Driver #4: Strategic FTAs and “market access math”

Strategic trade agreements are becoming more important, not just for diplomacy but also for business. Lower tariffs, clearer processes, and easier access to procurement can turn “interested buyers” into repeat customers. There are two things that stick out:

As per INDIA import data by Import Globals, the European Commission announced the end of the EU–India FTA on January 1, 2026. This “landmark” accord might change tariff lines and standards across a huge market if it goes into effect on time.

India–UK trade deal timetable (anticipated April 2026, according to reports): If it goes into effect as planned, it might make things more certain for exporters in sectors that require a lot of labor and services-led trade.

As per INDIA export data by Import Globals, India’s Department of Commerce has also pointed out that there have been many trade talks going on during this time. This suggests that there is a bigger drive to get market access when supply chains are being reorganized throughout the world.

What “record exports” could mean for the rest of FY26

As per INDIA trade data by Import Globals, India’s combined exports could be robust even if global demand for goods remained uneven, as long as the services engine maintains strong and manufacturing keeps gaining ground in higher-value sectors. The greater issue is about structure: a more stable export model is one that includes a variety of goods, services, and targeted market access instead of just a few commodity cycles.

Conclusion

A strong mix of factors is affecting India’s exports in FY 2025–26. These include strong services, a wider range of non-oil manufacturing, policy adjustments, and the market-access potential of free trade agreements (FTAs). So far this year, exports are going at a record speed, and they seem to be coming from a wider range of sectors and not just one or two price cycles. Import Globals is a leading data provider of INDIA import export trade data.

FAQs

1) Are India’s exports in FY 2025–26 already a record for the whole year?

“Record performance” usually means the run-rate and total exports so far this fiscal year, which is still continuing on.

2) What makes the biggest difference: goods or services?

Services have been a big part of the total growth in exports, and government comments have pointed out that services-led growth is strong.

3) What parts of the products industry are the most essential right now?

Recent government accounts keep bringing up electronics, pharmaceuticals, electrical apparatus, and cars as important drivers.

4) What do FTAs really do to change the results of exports?

Once the agreements go into force, they can drop tariffs, raise quotas, make it easier for Indian exporters to meet standards, and lower compliance friction. This will make it easier for Indian exporters to grow in big markets like the EU and UK.

5) Where to get detailed INDIA TRADE DATA?

Visit www.importglobals.com