India's exports started fiscal 2027 on a strong note, with overall exports rising 13.6% year-on-year to $80.8 billion in April 2026, even as geopolitical tensions in the Middle East disrupted key trade routes and markets.
Commerce Secretary Rajesh Agrawal said exports have remained resilient despite regional challenges, aided by India's ability to diversify into new geographies and product markets.
Goods exports touched a record $43.56 billion in April, compared with $38.28 billion in the same month last year, while services exports climbed to $37.2 billion from $32.8 billion.
India's overall imports also increased during the month, rising to $88.6 billion from $82.3 billion a year ago.
Goods imports stood at $71.9 billion against $65.4 billion in April 2025, while services imports edged lower to $16.66 billion from $16.9 billion.
As a result, the merchandise trade deficit widened slightly to $28.4 billion in April 2026, compared with $27.1 billion in the corresponding month last year.
The United States continued to be India's largest export destination, while China remained the country's biggest source of imports.
Government officials during the trade date briefing said India has been able to cushion the impact of conflicts in certain regions by expanding into alternative markets.
According to government data, India penetrated 1,821 new product-country export combinations in fiscal 2026, reflecting a broader diversification strategy.
Traditional sectors such as handlooms and oilseeds entered the highest number of new markets during the year. At the same time, high-value manufacturing categories also expanded globally.
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Exports of ships, boats and floating structures generated $57 million across 19 new markets, while nuclear reactor and boiler parts contributed $14.3 million across 13 new destinations.
Commerce Secretary Rajesh Agrawal said the government does not currently see crude oil prices hurting India's export competitiveness.
He also indicated that preliminary trends for May 2026 suggest export momentum remains encouraging, signalling a potentially strong start to the new financial year despite global uncertainties.
Gold Imports
India's gold imports jumped sharply in April 2026 to $5.63 billion, compared with $3.1 billion in April 2025.
Officials said the rise was largely driven by a sharp increase in unit values year-on-year rather than higher volumes. In fact, gold imports for fiscal 2026 declined in quantity terms even as overall import values rose.
The government indicated that higher import duties on gold and silver are expected to affect consumption patterns going forward.
Officials noted that elevated prices had already reduced import quantities last year, and the recent 9% duty hike could further weigh on demand for precious metals.
At the same time, the higher duties are expected to boost government revenue collections.
Imports from the UAE declined in both value and volume terms despite higher prices, resulting in a notable fall in the UAE's share of India's total gold imports.
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