India's Trade Performance Highlights Robust Growth in Q1 FY26

India's trade sector has demonstrated remarkable resilience in the first quarter of the financial year 2026, with the Department of Economic Affairs (DEA) reporting a significant uptick in exports. The Monthly Economic Review highlighted a 5.9% year-on-year increase in total exports, including both goods and services, showcasing the country's strong external sector performance amidst global economic uncertainties.

Core Merchandise Exports Show Promising Growth

Excluding petroleum and gems & jewellery, core merchandise exports grew by an impressive 7.2% YoY, underscoring the diverse strength of India's export sectors. This growth is a testament to the country's ability to navigate through shifting global trade patterns and maintain a competitive edge.

Forex Reserves and Rupee Stability: Pillars of Economic Resilience

India's foreign exchange reserves have remained robust, providing over 11 months of import coverage. This, coupled with the Indian rupee's stability despite global oil price fluctuations and geopolitical tensions, highlights the economy's resilience and its capacity to withstand external shocks.

Global Trade Dynamics and India's Strategic Position

The global trade landscape in 2025 has been marked by uncertainties, yet India's strategic initiatives and bilateral engagements have positioned it favorably. The decrease in the Trade Policy Uncertainty Index by 35% from April to June 2025 reflects a move towards greater stability in international trade policies, benefiting India's trade aspirations.