Eco Survey 2026: India’s exports hit record highs; external sector shows resilience amid global churns

India’s external sector has evolved amid heightened trade policy uncertainty, geopolitical realignments, and a gradual shift away from the era of hyper-globalisation, the Economic Survey 2026, tabled in Parliament on Thursday, said.

According to the Survey, global trade and investment flows are being reshaped by concerns around national security, technological sovereignty and strategic autonomy, which are creating both constraints and opportunities for emerging economies. Against this backdrop, India’s external performance has remained resilient to global shocks, reflecting the structural features of a fast-growing economy integrating more deeply with global markets, the survey said.

India’s total exports reached a record $825.3 billion in FY25 and $418.5 billion in the first half of FY26, driven by strong growth in services exports and sustained momentum in non-petroleum, non-gems and jewellery shipments. Higher-value manufacturing exports, particularly electronics, pharmaceuticals and electrical machinery, along with the diversification of export destinations and import sources, have strengthened resilience amid rising protectionism.


The services trade surplus continues to offset a large part of the merchandise trade deficit, supported by robust growth in software exports, business services and the expanding footprint of Global Capability Centres (GCCS), the survey stated.

According to the Survey, India’s current account remains stable, buoyed by services exports and remittance inflows. On the capital account, gross investment inflows have remained resilient despite a subdued global environment for foreign direct investment and volatile portfolio flows. External buffers have strengthened further, with foreign exchange reserves providing comfortable import cover and protection against external liabilities.

The survey noted that the global economic landscape is undergoing a structural reordering, with protectionist instincts rising, supply chains being recalibrated due to geopolitical shifts, and trade increasingly tilting towards bilateral arrangements. As vulnerabilities in global value chains become more visible, economies are turning inward to build domestic capacities and reduce overdependence on transnational supply chains.

India’s growing role in global trade is reflected in its rising export share. Between 2005 and 2024, India’s share of global merchandise exports increased from 1% to 1.8%, while its share in global commercial services exports rose from 2% to 4.3%, the survey said.

Citing UNCTAD, the survey added that India ranks third among Global South economies in the diversity of trade partnerships, underscoring resilience amid tariff uncertainties while highlighting scope for further diversification.