India’s overall trade expanded 5.4% to US$1.84 trillion during the fourth quarter of FY26, according to NITI Aayog’s latest Trade Watch Quarterly report. Although merchandise exports declined, strong growth in services exports helped strengthen India’s external trade performance and improve the country’s trade balance.
Services exports increased 9% year-on-year to US$111 billion, while services imports rose 4.1% to US$50.7 billion. As a result, India’s services trade surplus widened to US$60.4 billion, offsetting the merchandise trade deficit. The report identifies services exports as a key pillar of India’s external sector stability.
India also maintained its position as the world’s eighth-largest services exporter in 2025. Over the past decade, services exports nearly tripled from US$156 billion to US$416 billion, registering a 10.3% CAGR, significantly above the global average of 6.6%. The country further strengthened its leadership in telecom and IT services, increasing its global market share from 9.5% in 2015 to 14.9% in 2025.
The report highlights that India’s export markets are becoming more diversified, with Europe’s share of services exports rising while dependence on North America has gradually declined. India’s pharmaceutical sector also continued its strong performance, with exports reaching US$25.8 billion in 2025 and formulated drugs accounting for US$22 billion.
Overall, the findings demonstrate the growing resilience of India’s export ecosystem, with services, technology, and pharmaceuticals emerging as major drivers of long-term trade growth and global competitiveness.
Key Highlights:
- India's overall trade grew 5.4% to US$1.84 trillion i n Q4 FY26.
- Services exports increased 9% to US$111 billion.
- Services trade surplus widened to US$60.4 billion.
- Merchandise exports declined 2.8%, while imports rose 12%.
- India remained the world's eighth-largest services exporter in 2025.
- Services exports nearly tripled from US$156 billion (2015) to US$416 billion (2025).
- India's services export CAGR reached 10.3%, outperforming the global average of 6.6%.
- Telecom and IT services global market share increased to 14.9%.
- Pharmaceutical exports reached US$25.8 billion, led by formulated drugs.
- Services continue to strengthen India's export resilience and global trade competitiveness.
