Despite US tariffs and global economic challenges, India's exports demonstrated resilience, rising 1.9% to $38.51 billion in December and 2.44% to $330.29 billion in the first nine months of fiscal 2026. This growth was fueled by double-digit export increases in key markets like China, the US, and the UAE. Commerce Secretary Rajesh Agrawal attributed the success to government initiatives and support for MSME exporters, highlighting the effectiveness of these measures despite ongoing geopolitical tensions and supply chain disruptions. The performance is particularly notable given the volatile global trade environment and rising protectionism in major economies.
One of the standout markets is China, where India's exports surged by 37% to $14.25 billion in the April-December 2025 period. This growth accelerated sharply after the US imposed tariffs, with December exports to China jumping 67.3% to $2.05 billion. Indian exporters of marine products, affected by US tariffs, diversified significantly to China and other markets, according to Agrawal. Additionally, merchandise imports from China rose by over 13% year-on-year, contributing to a broader increase in imports from China and the US.
India's exports are also expanding in other regions, including the UAE, Malaysia, Hong Kong, and Spain. The top export destinations, such as the US, UAE, China, Netherlands, UK, Germany, Bangladesh, Singapore, Saudi Arabia, and Hong Kong, demonstrate a well-diversified and resilient export footprint, crucial at a time when global trade routes are being reshaped by geopolitical conflicts and sanctions. Services exports, which are growing faster than merchandise exports, are expected to add another $100 billion in the last quarter of fiscal 2026.
Imports from Russia, however, have seen a sharp decline due to American sanctions against Russian crude oil purchases. Imports from Russia fell by 2.77% year-on-year in December 2025 and by 9.41% during the April-December 2025 period. This shift in trade patterns reflects the global re-calibration of supply chains, with all countries adjusting their trade relationships in response to economic and political pressures.
