NITI Aayog released the 6th edition of its Trade Watch Quarterly report on February 13, 2026, covering Q2 FY2025-26 (July–September 2025). The report presents a comprehensive analysis of India's trade performance across merchandise and services sectors.
Key Highlights:
India's total exports grew by 8.5% year-on-year during Q2 FY2025-26. Merchandise exports showed robust growth, driven by engineering goods, pharmaceuticals, and electronic components. Services exports continued their upward trajectory, with IT and business process services remaining the dominant contributors.
The trade balance showed improvement compared to the same period in the previous year, reflecting both export growth and moderation in import intensity for non-essential goods. India's trade deficit narrowed as domestic manufacturing capacity expanded under PLI (Production Linked Incentive) schemes.
Top export destinations included the United States, UAE, and European Union. Emerging markets in Africa and Southeast Asia also showed increased demand for Indian goods. The report highlights that India's share in global merchandise trade has been gradually increasing, signalling improved competitiveness.
The report further notes that services trade surplus acts as a natural hedge against merchandise trade deficits. Software services, professional consulting, and financial services led service exports. Remittances also remained strong, supporting the current account.
NITI Aayog recommended continued focus on trade facilitation, reduction of logistics costs, and deeper integration with global value chains to sustain and accelerate export growth. The report serves as a quarterly benchmark for policymakers tracking India's external sector performance.