India’s overall exports, encompassing both merchandise and services, jumped 13.17% year-on-year to $80.45 billion in January 2026, up from $71.09 billion the previous year, according to fresh data from the Commerce Ministry. This robust growth underscores the resilience of India’s export engine amid global headwinds, driven by strong services performance and steady merchandise momentum.
Services exports led the charge, soaring from $34.75 billion to $43.90 billion, a remarkable 26.3% increase, highlighting India’s dominance in IT, software, business process outsourcing, and emerging digital services. Merchandise exports edged up modestly from $36.34 billion to $36.56 billion (0.6% growth), reflecting gains in sectors like engineering goods, petroleum products, gems & jewellery, and pharmaceuticals despite volatile commodity prices and geopolitical tensions. Imports, however, outpaced exports with an 18.76% rise to $90.83 billion from $76.48 billion, fueled by higher crude oil, gold, electronics, and capital goods inflows to support domestic growth and manufacturing revival. Consequently, India’s combined trade deficit (merchandise + services) ballooned to $10.38 billion, nearly double the $5.39 billion gap in January 2025, prompting watchful eyes on forex reserves and rupee stability.
Merchandise trade specifics reveal petroleum exports holding firm while imports climbed on
volume; non-oil exports likely benefited from free trade agreements (FTAs) with UAE, Australia, and recent UK pacts. Services strength aligns with Budget 2026’s push for the digital economy and skilling, positioning India as a global services superpower.
Government officials view this as a positive signal for FY26, targeting $2 trillion combined exports by 2030 via PLI schemes, export incentives, and infrastructure like Gati Shakti. While the widened deficit warrants policy tweaks on import substitution and value addition, the export uptick reaffirms India’s economic momentum under Viksit Bharat.
India’s Exports Surge 13.17% to $80.45 Billion in January 2026, Trade Deficit Widens
