India’s total exports in FY 2025‑26 reached a record **US$ 863.1 billion**, with merchandise exports of **US$ 441.8 billion** and services exports of **US$ 421.3 billion**. The surge was driven by deeper market access under multiple FTAs and the active use of trade‑facilitation platforms.
Key Developments
- Exports to the United Arab Emirates under the CEPA rose to **US$ 37.3 billion**, with 4.45 lakh Certificates of Origin issued.
- Australia’s ECTA generated **US$ 7.2 billion** in exports, supported by 2.73 lakh Certificates of Origin and an increase of 272 HS‑8 tariff lines.
- New Zealand, Mauritius, Oman and the EU‑EFTA TEPA also showed strong growth, with duty‑free access to over 98 % of tariff lines.
- The Ministry of Commerce & Industry issued over **7.5 lakh** total Certificates of Origin across all FTAs in FY 2025‑26.
Important Facts
- Top merchandise export partners: UAE (**US$ 37.3 bn**), UK (**US$ 13.4 bn**), Australia (**US$ 7.3 bn**).
- FTAs cover 99 % of Indian exports to the UK, 98 % to Oman, and 99.6 % to the EU‑EFTA bloc.
- Labour‑intensive sectors such as textiles, apparel, leather, gems, jewellery, marine products and handicrafts benefit from preferential market access.
- Digital platforms: Trade e-Connect and the TIA Portal have been upgraded to support exporters.
Exam Relevance
Understanding India’s export performance links directly to GS‑3 (Economy) topics such as external sector dynamics, trade policy, and the role of FTAs in boosting growth. The data illustrate how preferential market access can diversify export baskets, create employment in labour‑intensive sectors, and enhance India’s integration into global value chains. The monitoring mechanisms (Certificates of Origin, digital portals) showcase governance and inter‑agency coordination, relevant for GS‑1 (Governance) and GS‑4 (Ethics) discussions on transparency and accountability.
Way Forward
To sustain export momentum, the government should:
- Expand FTA coverage to emerging markets, especially in Africa and Latin America.
- Strengthen capacity of MSMEs in labour‑intensive sectors to meet quality standards of partner countries.
- Further integrate Trade e-Connect and TIA Portal with AI‑driven market forecasts.
- Maintain a calibrated approach that protects sensitive domestic industries while liberalising tariffs for competitive sectors.
These steps will help India retain its export growth trajectory and generate employment, aligning with the broader economic objectives of the Union government.