India’s merchandise export performance registered a sharp upswing in October 2026, with a handful of major industries contributing the bulk of the growth. Engineering goods, petroleum products and electronics were among the key drivers, as shipments posted their strongest monthly expansion in five years. According to a report by the Global Trade Research Initiative (GTRI), merchandise exports jumped 45.1 per cent year-on-year to a record $49.47 billion in October.
The strong monthly performance also lifted India’s cumulative merchandise exports for April-October to $309.06 billion, representing a 22 per cent increase compared with the same period last year.
Five major export categories — engineering goods, petroleum products, electronic goods, gems and jewellery, and organic and inorganic chemicals — accounted for nearly 83 per cent of the overall increase in merchandise exports during the month.
Their combined exports climbed 59.4 per cent to $34.37 billion in October, against $21.56 billion recorded in October last year.
Engineering, Petroleum And Electronics Lead Export Growth
The latest figures highlight the significant contribution made by India’s major industrial and manufacturing segments to the export expansion.
Engineering goods shipments increased 36 per cent year-on-year to $12.74 billion in October. Petroleum products recorded an even sharper rise, with exports surging 140.2 per cent to $8.89 billion.
Electronics also delivered a strong performance. Exports from the sector rose 62.7 per cent to $6.64 billion during the month, reflecting its growing contribution to India’s international trade.
Together, these sectors helped push overall merchandise shipments to a new monthly record. However, GTRI cautioned that the increase in export values should be assessed carefully, as higher international commodity and input costs may have contributed to the growth.
GTRI Flags Impact Of Higher Commodity Prices
Despite the impressive headline numbers, the research organisation pointed to the possibility that rising prices, rather than an equivalent increase in actual shipment volumes, may explain part of the export surge.
Import trends during October provide some context for this development. India’s imports of rough diamonds increased 63.6 per cent, while petroleum product imports rose 57 per cent. Electronic component imports also registered a substantial 50 per cent increase.
These figures suggest that some of the sectors recording strong export growth remain closely linked to imported raw materials, components and other inputs.
GTRI characterised the overall export performance as a combination of “price-driven concentration and a broadening recovery”. This assessment captures two simultaneous developments: higher export values in sectors dependent on imported inputs and improving demand across several labour-intensive industries.
Labour-Intensive Industries Show Signs Of Recovery
Beyond the major industrial categories, October also brought encouraging developments for India’s labour-intensive export segments.
Six such categories collectively recorded a 28.3 per cent increase in exports, taking their combined value to $9.07 billion during the month.
Textiles and garments performed well, with exports growing 26.3 per cent to $3.37 billion. Meat, dairy and poultry products also reported healthy growth, with shipments rising 34.9 per cent to $788.26 million.
The improvement across these categories is significant because they represent a broader section of India’s export economy. Stronger performance in labour-intensive industries indicates that the growth momentum was not restricted entirely to petroleum, engineering and electronics.
The expansion also points towards improving export activity across segments that support employment and involve a wide network of manufacturers and suppliers.
India’s Overall Trade Performance Improves In October
India’s broader trade numbers also reflected a substantial improvement during the month.
According to Commerce Ministry data, the country’s combined exports of merchandise and services increased nearly 30 per cent year-on-year to $89.99 billion in October.
At the same time, India’s overall trade deficit narrowed to $20.09 billion, compared with $25.15 billion in October of the previous year.
The reduction in the trade deficit, alongside stronger export receipts, provided another positive indicator for the country’s external trade position.
What October’s Export Numbers Indicate For India
The October performance highlights the growing contribution of engineering, petroleum and electronics to India’s export earnings, while the improvement in textiles, garments and other labour-intensive categories offers signs of a wider recovery.
However, the distinction between higher export prices and actual growth in shipment volumes remains important. As highlighted by GTRI, the rise in commodity and input costs could have inflated the value of shipments in certain categories.
Going forward, the sustainability of India’s export momentum will depend not only on global prices but also on demand conditions, manufacturing competitiveness and the ability of domestic industries to expand actual export volumes.
For now, the record October merchandise export figure and the narrowing trade deficit mark a strong month for India’s external trade, even as questions remain about the underlying composition of the growth.
