However, the outlook remains clouded by geopolitical tensions in West Asia. The United States said its military had halted maritime trade linked to Iran, even as President Donald Trump indicated that talks with Tehran to end the conflict could resume.
Services exports continued to be a key driver, pegged at $418.31 billion during the fiscal year, underlining India’s growing strength in sectors such as IT, business services and financial services.
Meanwhile, merchandise exports saw a modest increase of 1% to $441.78 billion, indicating relatively slower growth in goods trade compared with the services segment.
However, with a sustained push on strengthening domestic manufacturing, improving access to trade finance and deepening global partnerships, India looks well placed to maintain its export momentum in the coming months.
In the post-pandemic phase, the country has stood out as one of the fastest-growing major economies, drawing on strong domestic fundamentals to weather global volatility. The Economic Survey 2025–26 notes that India’s growth remains “the envy of the world,” supported by a robust banking system, healthy credit flow, ample foreign exchange reserves and a comfortable current account position.