NEW DELHI — India’s merchandise exports rose more than 15% year‑to‑date through September 21, 2026, according to data released by the Ministry of Commerce and Industry on Wednesday. The increase, reported by Commerce Minister Piyush Goyal, reflects higher shipments of petroleum products, engineering goods and pharmaceuticals to major markets including the United States, United Arab Emirates and the European Union.
Export performance by sector
The Ministry’s export‑performance bulletin shows petroleum products grew 28% in value, while engineering goods posted a 19% rise. Pharmaceutical exports increased 14%, and gems and jewellery rose 12% despite a slowdown in global luxury demand. The United States remained the top destination, accounting for 18% of total export value, followed by the United Arab Emirates (13%) and the United Kingdom (9%).
Policy backdrop
Goyal highlighted several policy measures that have supported the surge. The Export Promotion Capital Goods (EPCG) scheme was extended for an additional two years, allowing exporters to import capital equipment at reduced duty. The government also accelerated the rollout of the Merchandise Exports from India Scheme (MEIS) incentives, targeting high‑value sectors such as electronics and medical devices.
Comparison with previous fiscal year
For the same period in the 2024‑25 fiscal year, merchandise exports grew 9.3%, according to the Ministry’s historical data. The current 15% rise therefore marks a significant acceleration, narrowing the trade‑deficit gap that stood at $12.5 billion in September 2025.
External factors
Analysts note that robust global demand for energy and defence‑related equipment has benefitted Indian exporters. The ongoing geopolitical tensions in Eastern Europe have redirected some European buyers toward Indian petroleum derivatives, while the United States’ renewed focus on supply‑chain diversification has boosted orders for Indian engineering components.
Outlook
The Ministry projects that total merchandise exports could reach $450 billion by the end of the 2025‑26 fiscal year, up from $393 billion recorded in the previous year. Goyal urged exporters to maintain momentum and diversify into emerging markets in Africa and Southeast Asia.
