India's Exports Surge in FY26, Trade Deficit Crosses $25 Billion

• India's cumulative merchandise and services exports reached $634.26 billion from April to December 2025, a 4.33% increase year-on-year.
• The trade deficit for the first nine months of FY26 has widened to over $25 billion.
• The Commerce Ministry projects merchandise exports to exceed $450 billion and services exports $400 billion by fiscal year-end.
• Top export growth destinations include China (36.68%), Spain (53.33%), and the US (9.75%).
• Smartphones are India's fastest-growing export segment, up 44% YoY, with the US as the largest destination (200% YoY increase).

Why It Matters: India's exports are growing robustly, but the trade deficit is also expanding significantly.