India’s combined exports of goods and services registered strong year-on-year growth of 13.17% in January 2026, reaching US$ 80.45 billion, according to data released by the Ministry of Commerce. The expansion was largely powered by robust performance in services exports, while merchandise exports remained relatively steady.

The latest trade figures highlight the resilience of India’s external sector despite ongoing global economic challenges. Services such as information technology, business services, and financial services continue to play an increasingly prominent role in driving export growth.

Services Drive Export Momentum

While merchandise exports saw only marginal growth—rising to US$ 36.56 billion from US$ 36.34 billion a year earlier—services exports recorded a sharp increase to US$ 43.90 billion, up from US$ 34.75 billion in January 2025.

This strong services performance underscores India’s growing strength in knowledge-based and technology-driven sectors, which have become key contributors to the country’s export basket.

Imports Outpace Exports

On the import front, inbound shipments rose 18.76% year-on-year to US$ 90.83 billion in January 2026. As a result, the trade deficit widened to US$ 10.38 billion, compared to US$ 5.39 billion in the corresponding month last year.

Higher imports typically reflect healthy domestic demand and economic activity. However, the widening trade gap also signals the importance of enhancing export competitiveness and diversifying markets to maintain external balance.

Strategic Outlook

The January trade data reflects India’s expanding footprint in global commerce, particularly in the services domain. Policymakers may continue focusing on strengthening manufacturing exports while sustaining the momentum in high-value service sectors.

Maintaining export growth alongside prudent import management will be key to ensuring long-term trade stability and supporting overall economic expansion.

Summary

India’s total exports rose 13.17% year-on-year to US$ 80.45 billion in January 2026, driven primarily by strong growth in services exports. Merchandise exports remained largely stable, while imports increased 18.76% to US$ 90.83 billion, widening the trade deficit to US$ 10.38 billion. The data highlights the growing importance of services in India’s export mix and underscores the need to strengthen export competitiveness amid rising imports.

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