India’s trade performance remained steady in FY2025-26 despite rising tariffs and geopolitical tensions, with exports, imports and supply chains showing resilience, according to industry body ASSOCHAM.

In a statement released on Thursday, ASSOCHAM said India’s trade direction saw no major disruption during April–February 2025-26, even as global challenges intensified.

“The last financial year, 2025-26, was an extremely challenging year for India’s trade trajectory, and we have demonstrated our resilience in a significant way,” said Nirmal Kumar Minda, President, ASSOCHAM.

US remains top export market

The United States continued to be India’s top export destination, with shipments rising 3.8% year-on-year to $79.3 billion during April–February 2025-26, compared with $76.3 billion in the same period last year. The US share in India’s total merchandise exports remained largely stable at 19.7%  slightly higher than 19.3% a year ago.

Other key export markets, including the UAE, China, the Netherlands and the UK, retained their positions among the top five destinations. Hong Kong entered the top 10 export destinations, replacing Australia.

ASSOCHAM noted that the composition of India’s top 10 trade partners remained largely unchanged, reflecting stability in trade relationships despite global uncertainties.

Import trends steady, outlook positive

On the import side, China continued to be India’s largest source, with its share increasing marginally to 17% during the period. The overall list of top import partners remained broadly stable, with Hong Kong and Japan entering the top 10, replacing Indonesia and Korea.

“This supply chain trajectory reflects India’s strong resilience, supported by the government's trade facilitation measures and our traders' efforts to mitigate the worst impacts and turn adversities into opportunities,” the industry body said.

Looking ahead, ASSOCHAM expressed confidence that India’s exports will remain strong, supported by policy measures such as the extension of the RoDTEP scheme, the Bharat Audyogik Vikas Yojna (BHAVYA), and relief measures for exporters under advance authorisation and EPCG schemes.

India’s total merchandise exports are estimated to reach between $440 billion and $450 billion in 2025-26, compared with $437 billion in 2024-25.

“We expect our exports to grow strongly this financial year, supported by the resilience built last year and our strategic diversification into key alternative markets,” ASSOCHAM said.