India’s Services Sector Drives Record $863.1 Billion Exports in FY26

India's services sector emerged as the key driver behind the country's record combined exports of $863.1 billion in FY26, according to data released by the Ministry of Commerce and Industry.

The country's total exports of merchandise and services reached an all-time high of $863.1 billion in FY26, registering a compound annual growth rate (CAGR) of 5.7 per cent between FY15 and FY26.

Services exports witnessed robust growth during the period, rising from $158.1 billion in FY15 to $421.3 billion in FY26. The segment recorded a CAGR of 9.3 per cent over the 12-year period, significantly outpacing merchandise exports.

As a result, the share of services in India's total exports increased from 33.8 per cent in FY15 to 48.8 per cent in FY26, underlining the growing importance of the sector in the country's export basket.

Merchandise exports also maintained a steady growth trajectory, increasing from $310 billion in FY15 to a record $441.7 billion in FY26. The segment registered a CAGR of 3.3 per cent during the period.

India's non-petroleum exports also touched a record high of $387.9 billion in FY26, surpassing the previous peak of $374.1 billion recorded in FY25. The segment registered a growth of 3.6 per cent over the previous fiscal year.

According to the data, non-petroleum exports stood at $253.6 billion in FY15, rose to $266.1 billion in FY18 and remained largely stable at $266 billion during the pandemic-affected FY21.

The segment rebounded sharply to $354.5 billion in FY22 and continued its upward momentum to reach record levels in FY26, reflecting resilience and structural strength in India's manufacturing and export sectors.

(With inputs from ANI)