India's Cumulative Exports Rise 6.15% to $720.76 Billion in April–January 2025-26
India's cumulative merchandise and services exports for April–January 2025-26 reached $720.76 billion, up 6.15% from $679.02 billion in the same period of 2024-25
Merchandise exports for the 10-month period stood at $366.63 billion (up from $358.75 billion), while services exports contributed a larger share
Total cumulative imports for April–January 2025-26 reached $823.41 billion, growing 6.54% — slightly faster than exports
The merchandise trade deficit for the period widened to $283.23 billion (from $247.38 billion in the previous year)
However, the services trade surplus expanded to $180.58 billion (from $153.56 billion), partially offsetting the merchandise deficit
Balance of Payments (BoP): Structure and Components
India's Balance of Payments is a systematic record of all economic transactions between Indian residents and the rest of the world in a given period. It is divided into three accounts: the Current Account (trade in goods and services, income, transfers), the Capital Account (capital transfers), and the Financial Account (investment flows, forex reserves).
The April–January data shows merchandise exports growing, but the merchandise trade deficit widening (driven by higher imports), while the services surplus expands — a structural pattern that characterises India's BoP composition and is directly testable in UPSC Prelims.
India's Export Composition: Merchandise vs. Services
India's export basket reflects a distinctive dual structure: manufacturing exports are concentrated in petroleum products, gems & jewellery, chemicals, and engineering goods; while services exports are dominated by IT/software, business process services, and professional services.
India's total exports reaching $720.76 billion in 10 months, with services surplus growing faster than merchandise deficit, highlights how India's comparative advantage lies increasingly in services — relevant to trade policy and Mains analysis of India's growth drivers.
Foreign Trade Policy (FTP) 2023 and Export Promotion Architecture
India's Foreign Trade Policy 2023 (effective April 1, 2023) replaced FTP 2015-2020 and introduced a more dynamic, responsive framework for export promotion. It shifted from the earlier incentive-based model (where exporters received duty remission on fixed rates) to a more agile, remission-based approach.
Key Details
- Key schemes under FTP 2023: RoDTEP (Remission of Duties and Taxes on Exported Products), Advance Authorisation, Export Promotion Capital Goods (EPCG), SEZ/EHTP/STPI coverage
- RoDTEP replaced the earlier MEIS (Merchandise Exports from India Scheme) — WTO members had challenged MEIS as a prohibited export subsidy; RoDTEP is structured to be WTO-compliant
- Town of Export Excellence (TEE) scheme and Districts as Export Hubs (DEH): Policy to promote cluster-based and district-level export growth
- DGFT (Directorate General of Foreign Trade): Administers the FTP under the Ministry of Commerce and Industry
- Emphasis on e-commerce exports, MSME exporters, and emerging sectors including handicrafts, toys, and organic products
The 6.15% growth in cumulative exports against the backdrop of global trade slowdown and geopolitical uncertainties demonstrates the partial success of the FTP 2023 and export promotion architecture — a key data point for Mains essay or GS3 answers on trade policy.
- April–January 2025-26 total exports (merchandise + services): $720.76 billion (+6.15%)
- Previous year (April–January 2024-25): $679.02 billion
- Merchandise exports (Apr-Jan FY26): $366.63 billion
- Merchandise imports (Apr-Jan FY26): $649.86 billion
- Merchandise trade deficit (Apr-Jan FY26): $283.23 billion (wider than $247.38 billion in Apr-Jan FY25)
- Services trade surplus (Apr-Jan FY26): $180.58 billion (up from $153.56 billion)
- Total cumulative imports (Apr-Jan FY26): $823.41 billion (+6.54%)
- India's export target (FTP 2023): $2 trillion by 2030
- DGFT: Administers Foreign Trade Policy
- RoDTEP: WTO-compliant export duty remission scheme (replaced MEIS)