Electronics, Petroleum and Engineering Goods Fuel India's Exports, $1 Trillion Milestone in Sight for FY27

Strong growth in electronics, petroleum products and engineering goods is propelling India's exports towards the historic USD 1 trillion milestone for FY2026-27, even as services exports grow at a comparatively slower pace.

Commerce and Industry Minister Piyush Goyal expressed confidence that India would achieve the target for the first time, highlighting the country's expanding manufacturing capabilities and access to international markets.

During April–September 2026, India's combined goods and services exports reached USD 476.2 billion, up 13.84 per cent from USD 418.31 billion in the corresponding period last year.

Merchandise exports surged 18.5 per cent to USD 259.89 billion, led by three major industries.

Engineering goods remained the largest contributor, with exports rising 19.8 per cent to USD 70.87 billion. Petroleum products jumped 37.1 per cent to USD 41.19 billion, supported by refinery-product exports, while electronics recorded an impressive 44 per cent growth to USD 31.97 billion.

Together, these three industries contributed approximately 80 per cent of the USD 40.6 billion increase in merchandise exports during the first half.

Chemicals exports rose 15.6 per cent, marine products grew 13.2 per cent and pharmaceuticals increased 4.9 per cent. However, ready-made garment exports declined 6.2 per cent.

Petroleum's exceptional performance also reflects global fuel prices and refining-market conditions, making its contribution potentially more volatile than manufacturing-led export growth.

In contrast, services exports grew 8.7 per cent to USD 216.31 billion, considerably slower than merchandise exports. Although IT and business services remain major contributors, the comparatively modest growth highlights the increasing importance of manufacturing in driving India's current export momentum.

From $160 Billion to $1 Trillion

India's export journey reflects a remarkable transformation over the past two-and-a-half decades.

According to World Bank calendar-year data, India's average annual goods and services exports were approximately USD 159 billion during 2000–2009, rising nearly threefold to USD 476 billion during 2011–2020.

The annual average climbed further to approximately USD 790 billion during 2021–2025, bringing the country within striking distance of the trillion-dollar milestone.

India recorded approximately USD 863 billion in exports during FY2025-26. Achieving USD 1 trillion this fiscal year would represent another major breakthrough.

Trade Agreements to Open New Markets

Speaking at the curtain-raiser of Bharat Mobility Global Expo 2027, Goyal said India's expanding network of Free Trade Agreements (FTAs) could eventually provide preferential access to markets representing nearly 75 per cent of global GDP.

He particularly highlighted opportunities arising from the trade agreement with the 27-member European Union, which could encourage European automobile manufacturers to establish production facilities in India and use the country as a global export hub.

Goyal cited Maruti Suzuki's exports to Japan and around 50 other countries as an example of India's growing international competitiveness.

He also suggested that employment across the automobile and mobility ecosystem could potentially rise from the present 3 crore to 10 crore jobs in the coming years.

Commerce Secretary Rajesh Agarwal urged manufacturers to accelerate innovation, develop new products and strengthen MSME participation.

The Bharat Mobility Global Expo 2027, scheduled for February 4–9 across Bharat Mandapam and Yashobhoomi in New Delhi, is expected to feature over 1,750 exhibitors, 11 concurrent shows and more than 10 lakh visitors.

The event will showcase electric vehicles, advanced mobility technologies, batteries, air mobility, urban transport and next-generation transportation systems.

With approximately 48 per cent of the annual export target already achieved, India must generate another USD 524 billion in the remaining six months. Sustained manufacturing growth, stronger services performance and wider global market access will determine whether the country crosses the historic USD 1 trillion threshold.