India’s Trade Rises To USD 1,843.7 Billion In FY26, Deficit Narrows To USD 117.6 Billion

New Delhi, Aug 3 (KNN) India's total trade increased to USD 1,843.7 billion in FY 2025-26 from USD 1,674.4 billion in FY23, while the trade deficit narrowed to USD 117.6 billion from USD 121.6 billion over the same period, the government informed the Rajya Sabha.

India's Trade Deficit Narrows To USD 117.6 Billion

Minister of State for Commerce and Industry Jitin Prasada said the trade deficit accounted for 6.4 percent of total trade in FY26, compared with 7.3 percent in FY23.

India's total exports, including merchandise and services, stood at USD 863.1 billion in FY26, while imports were USD 980.7 billion.

Government Targets Import Dependence, Boosts Export Competitiveness

The government is reducing critical import dependence by strengthening domestic manufacturing and boosting exports through competitiveness, market access and global value-chain integration. 

The Foreign Trade Policy (FTP) 2023 promotes export diversification, ease of doing business, digitalisation and global trade integration. 

Initiatives such as the Export Promotion Mission, Districts as Export Hubs, Trade Connect, TIA Portal, e-Certificates of Origin and customs modernisation aim to enhance export competitiveness, particularly for MSMEs.

PLI Schemes To Strengthen Domestic Manufacturing

The government is strengthening domestic manufacturing through PM Gati Shakti, the National Logistics Policy, industrial corridors and digital customs systems. 

PLI schemes across 14 sectors and the National Mission on Manufacturing aim to expand capacity and integrate India with global value chains. 

To reduce strategic import dependence, it is promoting domestic capacity, technology adoption, innovation, supply-chain resilience and diversified import sources for key commodities. 

MSMEs At Centre Of Export Promotion Strategy

The government said MSMEs are a key part of India’s export ecosystem and are being supported through export promotion, trade facilitation, market access and capacity-building measures. 

The Export Promotion Mission (EPM), approved for FY26-FY31, includes Niryat Protsahan and Niryat Disha, targeting MSMEs, first-time exporters and labour-intensive sectors. 

Support covers trade finance, quality and compliance, branding, trade fairs, warehousing, logistics, trade intelligence and capacity building.

Districts As Export Hubs To Integrate Local Producers With Global Markets

Under the Districts as Export Hubs initiative, district-specific products and services with export potential are identified and local producers, artisans, farmers and MSMEs are integrated into global value chains.

State Export Promotion Committees and District Export Promotion Committees have been established to formulate and implement district-level export action plans, supported by capacity building, market linkages and e-commerce enablement.

TIES Supports Export Infrastructure Across States

The government’s Trade Infrastructure for Export Scheme (TIES) supports export infrastructure such as testing labs, cold chains, cargo terminals, customs stations and border haats. 

As of July 27, 2026, Rs 579.93 crore had been released to states and UTs, including Rs 13.66 crore to West Bengal. 

Digital platforms such as TIA Portal, Trade e-Connect, e-Certificate of Origin, Jan Sunwai and 24x7 IEC generation are improving trade data, export services and market intelligence for businesses, including MSMEs. 

(KNN Bureau)