Despite the constant shifts in global trading dynamics, the trade performance of India remained resilient in the first quarter of the financial year 2026, according to the monthly economic assessment report of the Department of Economic Affairs (DEA).
The report emphasized that the total export, including both goods and services, grew by 5.9 percent on an annual basis (JOJ) during the April-June period of FY26. Core merchandise exports, which excludes petroleum and precious stones and jewelry, saw an even stronger growth of 7.2 percent yoj.
These figures reflect the power and stability of the external sector of India, even in the light of global economic uncertainties. It stated: “In the midst of shifting worldwide trading patterns, the trade performance of India remain resilient in the first quarter of FY26.”
The report data also emphasized that the foreign exchange reserves remained at a comfortable level, which resulted in an import cover of more than 11 months. This is a strong indicator of the economic stability of India, so that the economy is helped by external shocks.
Moreover, despite fluctuations in the global oil prices and a short conflict in the middle, the Indian rupee showed low volatility and the exchange rate was well recorded until the end of June 2025.
The report also became the broader global trade environment. Continuous geopolitical tensions have added uncertainty and complexity to global trade flows.
The worldwide trade in goods and services, however, showed resilience in the first half of 2025, which increases with USD 300 billion.
According to the Update of Unctad’s July 2025, global trade growth delayed in the first quarter of 2025, but showed a rebound in the second quarter. While developed countries led trade growth during this period, developing countries lagged behind, despite their strong performance in earlier quarters.
A remarkable development is the falling trend in trade -related uncertainty. The trade policy uncertainty index, which peaked in April 2025, showed a significant decrease of approximately 35 percent in a month in a month in June 2025, indicating that clarity and stability in global trade policy is improved.
In response to the continuous challenges in the field of global trade, countries around the world are increasingly opting for bilateral negotiations to resolve trade conflicts.
At the same time, they focus on building resilience of the supply chain by stimulating domestic production in critical sectors and diversifying their purchasing in regions.
These efforts are intended to guarantee the viability and stability of long -term trade flows in a fragmented global economic environment.
Published July 29, 2025
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