India’s total exports touched a record $863.1 billion in the fiscal year 2025-26, driven by strong growth in both merchandise and services. The government credits this success to expanded free trade agreements (FTAs), which have provided better market access for Indian products. Investors may track how these trade pacts continue to influence export-oriented sectors like textiles, agriculture, and engineering.
Detailed Coverage
India achieved a major trade milestone in the fiscal year 2025-26, with total exports climbing to an unprecedented $863.1 billion. According to official data from the Ministry of Commerce and Industry, this growth reflects a balanced contribution from both the merchandise sector, which stood at $441.8 billion, and the services sector, which recorded $421.3 billion. The government has attributed much of this performance to the strategic implementation of various Free Trade Agreements (FTAs) that have lowered trade barriers for Indian exporters.
Impact of Key Trade Agreements
The Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) stands out as a significant contributor, with merchandise exports to the nation reaching $37.36 billion. Other regional blocs also remained core drivers of volume, with ASEAN countries accounting for $38.42 billion and SAFTA nations contributing $25.77 billion. Newer agreements are also showing early momentum; for instance, the trade pact with Oman, which became effective on June 1, 2026, saw exports to the country rise by 190% year-on-year in June, supported by broad duty-free access.
Strengthening Export-Oriented Sectors
The current trade policy focuses on supporting labour-intensive industries, including textiles, leather, footwear, and gems and jewellery. By utilizing preferential tariff benefits, companies in these sectors are finding it easier to penetrate competitive global markets. To assist in this transition, the Commerce Department has ramped up the use of digital tools like the Trade Intelligence and Analytics (TIA) Portal. These platforms are designed to provide exporters with real-time data on tariffs and market opportunities, helping them optimize their product portfolios.
While the growth in export value is substantial, the long-term benefit for listed companies will depend on their ability to maintain competitive pricing and manage demand fluctuations in major global economies. Investors tracking sectors heavily reliant on exports, such as textiles or marine products, should monitor how these companies utilize these trade pacts to improve their profit margins and market share. The ability to shift toward higher-value products, as seen with the increased tariff lines exported to the UAE, remains a key indicator of business health in this evolving trade environment. Moving forward, the focus will be on the execution and utilization rates of these agreements by domestic firms, as well as any changes in global trade policies that could impact future export demand.