India's exports hit record $863.1 billion in FY26 as free trade agreements boost global trade

India's exports touched an all-time high of $863.1 billion in FY2025-26, driven by strong growth in both merchandise and services shipments and supported by India's expanding network of free trade agreements (FTAs), the government said on Tuesday.

According to data shared by the Ministry of Commerce and Industry in Parliament, merchandise exports stood at $441.8 billion, while services exports reached $421.3 billion, highlighting the growing contribution of India's services sector alongside manufacturing-led exports.

Among FTA partners, the UAE remained India's largest export destination under a trade pact, with merchandise exports worth $37.36 billion during FY26. Exports to ASEAN countries totalled $38.42 billion, while shipments to SAFTA nations stood at $25.77 billion. The recently implemented trade agreements with the UK and Oman also recorded encouraging export performance, with merchandise exports of $13.44 billion and $4.02 billion, respectively.

The government said recent trade agreements have helped Indian exporters diversify products and expand market access. Under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), the number of tariff lines exported increased from 7,546 before the pact to 8,053 in FY26, indicating broader product penetration. More than 4.45 lakh Certificates of Origin have been issued since the agreement came into force in May 2022.

Similarly, exports to Australia under the Economic Cooperation and Trade Agreement (ECTA) expanded across more tariff lines, while the India-Mauritius CECPA and the recently operationalised Oman CEPA also showed higher utilisation of preferential tariff benefits.

The ministry said the India-Oman CEPA, which came into force on June 1 this year, has already delivered early gains. Exports to Oman rose 54.7% month-on-month in June and nearly 190% year-on-year, supported by duty-free access across almost all Indian exports by value.

The government said labour-intensive sectors such as textiles and apparel, leather, footwear, gems and jewellery, marine products, carpets, handicrafts and agricultural products are expected to be among the biggest beneficiaries of the new trade agreements. The FTAs provide preferential market access while protecting sensitive domestic industries through calibrated tariff liberalisation.

To help exporters make better use of these agreements, the Commerce Department has strengthened digital trade facilitation platforms such as Trade e-Connect and the Trade Intelligence and Analytics (TIA) Portal, which provide market intelligence, tariff information, rules of origin guidance and trade analytics. Commerce and Industry Minister of State Jitin Prasada shared the details in a written reply in the Lok Sabha.