Department of Economic Affairs stated in a latest monthly update that in light of the shifting global trade patterns, India’s trade performance in Q1 FY26 reflects resilience. The country’s total exports (goods & services) have registered a growth rate of 5.9 per cent (YoY) in Q1 FY26, reaching USD 210.3 billion. While merchandise exports have grown by 1.9 per cent (YoY), services exports grew by 10.9 per cent (YoY) during the period. This strength in the services exports has generated a net services surplus of USD 46.9 billion, which narrowed the trade deficit to USD 20.3 billion, a reduction of 9.4 per cent compared to Q1 FY25.
During the same period, core merchandise exports continued to grow strongly by 7.2 per cent (YoY), mainly driven by electronic goods that have grown by 47.1 per cent (YoY). Petroleum products exports fell starkly by 15.6 per cent (YoY) during Q1 FY26. Similarly, merchandise imports have increased by 4.2 per cent (YoY); the petroleum, crude and products imports fell by 4.4 per cent (YoY). This reduction is likely attributable to the softening of the average Crude Oil FOB Price (Indian Basket), which has decreased to USD 67.2 per barrel in Q1 FY26 from USD 85.2 per barrel in Q1 FY25.
India’s trade performance in June 2025 reflects prevailing quarterly trends. Merchandise exports remained stable at USD 35.1 billion, similar to their level in June 2024, although core merchandise exports registered a 4.8 per cent (YoY) increase. Merchandise imports decreased by 3.7 per cent (YoY), primarily driven by falling gold imports and petroleum, crude and products. Notably, in June 2025, gold imports decreased by 27.6 per cent month-on-month from May 2025, which can be attributed to import restrictions implemented in June 2025. Robust services exports in June 2025 generated a net services surplus of USD 15.3 billion. As a result, the overall trade deficit narrowed to USD 3.5 billion in June 2025, representing a reduction of 51.9 per cent compared to June 2024.