India’s services sector emerged as the biggest contributor to the country’s record export performance in FY26, highlighting a structural shift in the composition of India’s overseas trade.
According to data released by the Ministry of Commerce and Industry, India’s combined merchandise and services exports reached an all-time high of USD 863.1 billion in FY26.
The country’s total exports registered a compound annual growth rate (CAGR) of 5.7 percent between FY15 and FY26.
The strongest momentum came from services exports, which expanded significantly over the period.
Services exports rose from USD 158.1 billion in FY15 to USD 421.3 billion in FY26, recording a CAGR of 9.3 percent over the 12-year period.
This growth rate was substantially higher than that of merchandise exports, underscoring the sector’s increasing role in India’s trade story.
As a result, the share of services in India’s total exports climbed sharply from 33.8 percent in FY15 to 48.8 percent in FY26.
The data points to the growing importance of sectors such as information technology, business services, financial services, and other knowledge-driven industries in supporting India’s external sector.
Merchandise exports also continued to expand, albeit at a more moderate pace.
Exports of goods increased from USD 310 billion in FY15 to a record USD 441.7 billion in FY26, translating into a CAGR of 3.3 percent during the period.
Another notable milestone came from non-petroleum exports, which reached a record USD 387.9 billion in FY26, surpassing the previous high of USD 374.1 billion recorded in FY25.
Non-petroleum exports grew 3.6 percent year-on-year, reflecting the resilience of India’s manufacturing base despite global uncertainties.
The data also highlights the segment’s long-term trajectory.
Non-petroleum exports stood at USD 253.6 billion in FY15, rising to USD 266.1 billion in FY18 before remaining broadly unchanged at USD 266 billion in FY21, a period marked by pandemic-related disruptions.
The segment rebounded strongly thereafter, climbing to USD 354.5 billion in FY22 and continuing its upward trend to reach a new peak in FY26.
The latest figures suggest that while merchandise exports remain an important pillar of India’s trade performance, services are increasingly driving export growth and reshaping the country’s external sector.
The rising contribution of services, coupled with the steady expansion of non-petroleum exports, points to greater diversification and underlying strength in India’s export ecosystem.
