Merchandise exports cross US$441 billion, services exports exceed US$421 billion; UAE, ASEAN among top destinations
ADITYA RAJ DAS /New Delhi
India’s total exports climbed to an all-time high of US$863.1 billion in 2025-26, driven by robust growth in both merchandise and services exports and supported by expanding market access under the country’s network of Free Trade Agreements (FTAs), the government informed Parliament on Tuesday.
In a written reply in the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said merchandise exports reached US$441.8 billion, while services exports stood at US$421.3 billion, underlining the strong contribution of both sectors to India’s external trade performance.
The Ministry of Commerce and Industry said India’s recent trade agreements have opened new export opportunities, particularly in markets such as the United Arab Emirates (UAE), the United Kingdom, Australia, Oman and EFTA countries, while also helping diversify export destinations and promote labour-intensive industries.
Among India’s FTA partners, ASEAN remained the largest destination for merchandise exports at US$38.42 billion, followed closely by the UAE (US$37.36 billion). Exports to SAFTA countries stood at US$25.77 billion, while shipments to the United Kingdom and Singapore reached US$13.44 billion and US$11.86 billion, respectively, during FY26.
The Ministry noted that the increasing use of Certificates of Origin under recently implemented trade agreements reflects their growing utilisation by Indian exporters and wider product coverage.
Under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into effect in May 2022, more than 4.45 lakh Certificates of Origin have been issued. The number of tariff lines exported to the UAE increased from 7,546 in FY22 to 8,053 in FY26, with exports valued at US$37.3 billion, indicating greater product diversification and deeper penetration into the UAE market.
Similarly, the India-Australia Economic Cooperation and Trade Agreement (ECTA), operational since December 2022, has seen the issuance of over 2.73 lakh Certificates of Origin. The number of tariff lines exported to Australia increased from 5,396 to 5,668, while merchandise exports touched US$7.28 billion in FY26.
The government also highlighted positive outcomes under the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA). Exports expanded across 4,345 tariff lines, up from 3,593 before the agreement, with shipments to Mauritius valued at around US$473 million.
According to the Ministry, the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which came into force on June 1, 2026, has also recorded encouraging initial results. A total of 783 Certificates of Origin have already been issued, while exports to Oman rose to US$622.8 million in June 2026, registering a 54.7% month-on-month increase and an impressive 189.6% year-on-year growth. The number of tariff lines exported to Oman also increased from 2,879 in May to 3,371 in June.
The India-EFTA Trade and Economic Partnership Agreement (TEPA), operational since October 2025, has also witnessed strong adoption, with 7,885 Certificates of Origin issued so far.
The Ministry said recent trade agreements have placed particular emphasis on labour-intensive sectors, providing enhanced market access for industries such as textiles and apparel, leather and footwear, gems and jewellery, marine products, carpets, handicrafts and agricultural products, while protecting sensitive domestic industries through calibrated tariff liberalisation.
According to the government, these agreements provide substantial preferential market access, including 99% of Indian exports to the UK, 100% duty-free access to New Zealand, 98% of Oman’s tariff lines, and 99.6% of tariff lines under the India-EFTA TEPA.
To maximise the benefits of these agreements, the Department of Commerce has put in place a comprehensive export monitoring framework involving the Directorate General of Foreign Trade (DGFT), Export Promotion Councils, Commodity Boards, line ministries, state governments and Indian Missions abroad.
The Ministry has also strengthened digital trade facilitation through platforms such as Trade e-Connect and the Trade Intelligence and Analytics (TIA) Portal, which provide exporters with market intelligence, tariff information, Rules of Origin guidance, buyer-seller databases, trade analytics and FTA advisory services to help businesses expand into international markets and make better use of preferential trade arrangements.
The government said these initiatives are aimed at sustaining India’s export momentum and enhancing the country’s competitiveness in global trade while supporting the long-term objective of expanding its share in international markets.