India’s exports hit record $863.1 billion in FY26 as FTAs boost trade with UAE, UK and Australia

By R Anil Kumar

• FTAs deepen global access for Indian exporters as FY26 trade growth breaks records

• India’s total exports reached a record US$863.1 billion in the 2025–26 financial year, driven by top sectors like engineering goods, petroleum products, and electronics. Key export destinations include the United States, the United Arab Emirates, and the Netherlands.

Major Export Sectors:

Engineering Goods:The largest merchandise sector, including transport equipment, tools, and machinery.

• Electronics: Rapidly growing segment covering telecom instruments and smart devices.
• Petroleum Products: Refined fuels shipped globally from major domestic refineries.
• Pharmaceuticals: Packaged medicaments and biological drug formulations.
• Gems and Jewellery: Precious stones, diamonds, and gold ornaments
• Key Trading Partners
• United States: Continues to be the single largest country market for Indian merchandise.
• United Arab Emirates (UAE): Boosted heavily by bilateral free trade agreements (FTAs).
• European Hubs: The Netherlands and the United Kingdom remain vital core destination

Bengaluru, July 28, 2026. India’s total exports reached a record US$863.1 billion in the financial year 2025-26, driven by strong growth in both merchandise and services exports and supported by expanding market access under the country’s free trade agreements (FTAs).

According to the Ministry of Commerce and Industry, merchandise exports stood at US$441.8 billion, while services exports reached US$421.3 billion, reflecting the combined strength of both sectors in driving India’s export growth.

The Ministry said India’s recent trade agreements have significantly expanded export opportunities, particularly with the United Arab Emirates (UAE), the United Kingdom, Australia, Oman and EFTA countries, while also helping diversify export markets and strengthen labour-intensive sectors.

Among FTA partners, merchandise exports were highest to ASEAN countries at US$38.42 billion, followed by the UAE at US$37.36 billion, SAFTA countries at US$25.77 billion, the UK at US$13.44 billion and Singapore at US$11.86 billion during FY 2025-26.

The Ministry highlighted the growing utilisation of India’s recently operationalised trade agreements through the increasing use of Certificates of Origin and wider product coverage.

Since the India-UAE Comprehensive Economic Partnership Agreement (CEPA) came into force 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 export diversification and deeper market penetration.

Similarly, under the India-Australia Economic Cooperation and Trade Agreement (ECTA), which became operational in December 2022, over 2.73 lakh Certificates of Origin have been issued. The number of tariff lines exported to Australia increased from 5,396 to 5,668, while merchandise exports reached US$7.28 billion in FY26.

The Ministry also cited positive outcomes from the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA), under which exports expanded across 4,345 tariff lines, compared with 3,593 tariff lines before the agreement. Indian exports to Mauritius under the agreement were valued at about US$473 million.

The recently implemented India-Oman CEPA, which came into force on June 1, 2026, has also shown encouraging results. According to the government, 783 Certificates of Origin have already been issued. Exports to Oman in June 2026 rose to US$622.8 million, registering a 54.7% month-on-month increase and 189.6% year-on-year growth, while the number of tariff lines exported increased from 2,879 in May to 3,371 in June.

The Ministry said the India-EFTA Trade and Economic Partnership Agreement (TEPA), operational since October 2025, has also witnessed strong utilisation, with 7,885 Certificates of Origin issued so far.

According to the Ministry, labour-intensive sectors have remained a key focus in India’s recent trade negotiations. Agreements with the UAE, Australia, the UK, Oman, New Zealand and EFTA provide improved market access for sectors including textiles and apparel, leather and footwear, gems and jewellery, marine products, carpets, handicrafts and agricultural products, while safeguarding sensitive domestic industries through calibrated tariff liberalisation.

The Ministry said these agreements provide duty-free or preferential access to a substantial share of partner-country tariff lines, 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 strengthen export promotion, the Department of Commerce has established a comprehensive 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 expanded 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 information, trade analytics and FTA-related advisory services to help businesses access international markets and make better use of preferential trade agreements.