India’s export engine is gaining momentum, with combined merchandise and services exports reaching around $399 billion during April-August 2026, according to a new report that points to broader participation in global trade and stronger prospects for achieving the country’s $1 trillion export ambition.
Merchandise exports rose 17.8 per cent to $216 billion during the five-month period, while services exports increased 13 per cent to $183 billion. The report said the performance reflects the strength of two complementary drivers supporting India’s export expansion.
Non-petroleum exports provided a significant part of the momentum, reaching $181 billion, an increase of 14 per cent. Excluding petroleum products as well as gems and jewellery, exports rose 15 per cent to $169 billion, suggesting that growth is becoming less dependent on a narrow group of commodities.
Electronics emerged as one of the strongest areas of expansion. Electronic-goods exports increased from $2.9 billion in August 2025 to $5.5 billion in August 2026, representing growth of 89.8 per cent.
The sharp increase highlights India’s expanding role in technology-intensive manufacturing and global value chains. The report said the next stage of growth would depend on increasing domestic value addition through components, product design, research, engineering and advanced manufacturing.
India is also expanding its export footprint across a wider range of international markets. The report pointed to stronger trade flows with ASEAN, Africa, East Asia, Europe and North America as evidence of increasing market diversification.
Exports to Singapore surged 96 per cent during the period, while shipments to Malaysia increased 74 per cent. Exports to China rose 39 per cent and those to Tanzania jumped 129 per cent. Ship was highlighted as particularly significant, given the competitive nature of the Chinese market. The report said the rise demonstrated the ability of Indian exporters to gain greater access to one of the world’s major trading, rapidly expanding electronics shipments and stronger engineering and manufacturing exports is broad exporters continue to gain market share while servicesments to the United States also recorded growth of six per cent.
The increase in exports to China was highlighted as particularly significant, given the competitive nature of the Chinese market. The report said the rise demonstrated the ability of Indian exporters to gain greater access to one of the world’s major trading economies.
The combination of resilient services exports, rapidly expanding electronics shipments and stronger engineering and manufacturing exports is broadening the foundation of India’s export economy.
The report said that if merchandise exporters continue to gain market share while services maintain their resilience, India could substantially deepen its participation in global trade.
The latest figures also underline the importance of moving towards higher-value exports. Sustaining the momentum will depend not only on increasing shipment volumes but also on strengthening domestic capabilities in technology, components, research and advanced manufacturing.
With combined exports approaching $400 billion in the first five months of the financial year, the performance provides a stronger base for India’s ambition of reaching $1 trillion in annual exports.
