India’s Exports May Cross $1 Trillion in FY26, says FIEO

India’s total exports of goods and services are projected to reach $1 trillion in the financial year 2025–26, according to the Federation of Indian Export Organisations (FIEO). This would be a rise of over 21% from $825 billion in FY25.

Breakdown of Projections

Merchandise exports are expected to increase to $525–535 billion in FY26, up from $437 billion in FY25. Services exports are likely to touch $465–475 billion in FY26, compared to $387 billion in FY25.

Sector-wise Contribution

Petroleum exports are estimated to contribute $70 billion. Electronics and electricals could bring in around $60 billion. Agriculture is projected at $55 billion. Machinery and chemicals are expected to add $40 billion each. Pharmaceutical exports are pegged at $30 billion, while gems and jewellery may account for $30–$35 billion. Apparel and made-up goods are projected to reach $23–$25 billion.

FY25 Export Performance

India’s total exports in FY25 stood at $825 billion, rising from $778.1 billion in FY24. This includes both goods and services. During April–February FY25, merchandise exports were flat at $395.63 billion compared to $395.38 billion in the same period last year. However, non-petroleum exports rose by 6.43% to reach $337.01 billion, up from $316.64 billion.

Read More: India’s Exports Reach Historic High of $825 Billion in FY 2024-25!

New Export Requirements for EU

From January 1, 2026, Indian exporters targeting the European Union will need to comply with the Digital Product Passport (DPP). This will initially apply to sectors like electronics, batteries, textiles, and construction materials. The DPP will include details about a product’s lifecycle, from raw material sourcing to disposal. Exporters not meeting these requirements may face shipment rejections or loss of market access.

Disruptions caused by the Red Sea crisis and geopolitical conflicts have started easing. Shipping activity in affected areas has gradually resumed, improving logistics for exporters.

Conclusion

India’s export figures are expected to grow in FY26. At the same time, exporters may need to prepare for new compliance rules in key markets.

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