Total merchandise imports rose 16.5 percent compared to the previous year. Commerce department estimates indicate that import expansion and trade deficit growth can form part of seasonal patterns.
Global Destination Growth
Rajesh Agarwal said that 43 of India’s top 50 export destinations recorded positive growth during the month.
Exports to markets including Spain, South Africa, Egypt, Hong Kong, Malaysia, Ghana, Turkey, Oman, the United Kingdom, and Mexico expanded by more than 50 percent. Shipments to China, Japan, and the United States grew between 39 percent and 48 percent.
Free Trade Agreements Drive Merchandise Exports
Agarwal pointed to the strong performance of partner markets linked through free trade agreements. Merchandise exports were driven by petroleum products, electronics, gems and jewellery, processed food items, and engineering goods.
Minister Piyush Goyal Aims for 1 Trillion Dollar Export Target
Final services trade figures from the Reserve Bank of India are scheduled for release later in the month.
“Our USD 1 trillion export target this year is sacrosanct. We have to achieve it,” Union Commerce and Industry Minister Piyush Goyal said, supporting strong export performance aimed at reaching a 1 trillion dollar total export target for the current fiscal year, encompassing both goods and services. Merchandise export growth has also lifted the share of exports in gross domestic product, which reached 14 percent in the first quarter of the 2026-27 financial year after declining across the prior three fiscal years.
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During the 2023-24 financial year, the share of merchandise exports in GDP stood at 12.5 percent, before dropping to 11.7 percent in 2024-25 and further contracting to 11.3 percent in 2025-26 amid sluggish global demand and heavy U.S. tariffs on Indian goods in 2025-26. The first quarter of 2026-27 restored this share to levels last seen in the 2022-23 financial year, when annual merchandise exports reached a record high.