India achieves record exports in first half of FY26, signaling global competitiveness

India’s export sector has demonstrated remarkable resilience in 2025-26, posting its highest-ever quarterly exports in both Q1 and Q2, and achieving an all-time record for the first half of any financial year. This comes at a time when global trade continues to face headwinds from geopolitical tensions, supply-chain disruptions, inflation, and uneven demand across major markets.

In the first quarter (April-June 2025), India’s combined merchandise and services exports reached USD 209.0 billion, surpassing last year’s Q1 figure of USD 202.5 billion. Analysts attribute this performance to strengthened export competitiveness, supply-chain modernization, and deeper integration with global value chains.

The momentum accelerated in Q2 (July-September 2025), with exports climbing to USD 209.9 billion, the highest ever for any second quarter. This represents a significant jump from USD 193.2 billion in Q2 of 2024, reflecting broad-based recovery even as many global economies struggled with contracting trade and subdued demand. Key drivers included rising smartphone shipments, robust agricultural exports supported by favourable monsoon conditions, strong IT and services exports, and growth in pharmaceuticals and textiles.

Government initiatives played a pivotal role in this growth. Production-Linked Incentive (PLI) schemes encouraged domestic manufacturing and exports in high-growth sectors, boosting competitiveness against global players. Meanwhile, logistics and infrastructure upgrades, including port expansions and modernized cargo handling, ensured faster, more reliable trade, helping exporters deliver goods efficiently to global markets. Simplified export procedures and targeted incentives for services, IT, and high-value goods further strengthened India’s global standing.

Cumulatively, India’s exports for the first half of FY26 (April–September) stood at USD 418.9 billion, up from USD 395.7 billion in the same period of 2024, a growth of 5.86 per cent. While moderate in percentage terms, this is particularly significant given global challenges and marks the highest-ever H1 export performance for India.

India’s achievement is even more remarkable given global challenges like US interest rate hikes, supply-chain delays, and geopolitical tensions. A diversified export basket, cost-competitive goods, skilled workforce in IT and services, and strategic market positioning allowed India to capture global demand where other countries struggled. While uncertainties remain, continued policy support, logistics efficiency, and sectoral diversification provide a strong foundation for sustaining momentum and potentially achieving another record in the full fiscal year.

“With policy support and continued focus on global competitiveness, India is well-positioned to sustain this momentum for the remainder of FY26,” noted trade analysts. The historic quarterly and half-yearly export figures underscore India’s emergence as a reliable and competitive partner in international trade.

Gist: India sets a new export record in H1 FY26, led by electronics, agriculture, services, pharmaceuticals, and textiles, overcoming global challenges and poised to sustain growth.