FIEO Upbeat About Robust Trade Growth After US-Iran Peace Deal

New Delhi:

Port Wings News Network:

The Federation of Indian Export Organisations (FIEO) has welcomed India’s impressive foreign trade performance during April–May 2026-27, reflecting the resilience and growing global competitiveness of Indian exporters amid evolving international economic conditions especially amid US-Israel-Iran Peace deal.

According to the latest trade data, India’s Overall Exports (Merchandise and Services combined) during April–May 2026-27 reached US$ 162.69 billion, registering a healthy growth of 14.66 percent over the corresponding period of the previous year.

Merchandise exports during April–May 2026-27 stood at US$ 88.91 billion, recording a robust growth of 16.09 percent, while merchandise exports in May 2026 alone reached US$ 45.20 billion, reflecting an impressive growth of 18.01 percent. India’s Overall Imports (Merchandise and Services combined) during April–May 2026-27 stood at US$ 182.83 billion, showing a growth of 14.38 percent. Merchandise imports during April–May 2026-27 reached US$ 145.35 billion, registering a growth of 15.14 percent, while merchandise imports in May 2026 stood at US$ 73.42 billion, reflecting a growth of 20.62 percent.

Commenting on the trade performance, S C Ralhan, President, FIEO, said that the strong growth in exports during the first two months of FY 2026-27 is a highly encouraging sign for India’s external sector. Achieving over 16 percent growth in merchandise exports and nearly 15 percent growth in overall exports despite global uncertainties demonstrates the resilience, adaptability and competitiveness of Indian exporters. This performance reflects the positive impact of policy reforms, enhanced market access initiatives, growing manufacturing capabilities and the sustained efforts of exporters across sectors.

The recent diplomatic breakthrough in West Asia, Ralhan said as with regard to the emerging peace framework involving the United States, Iran and the broader regional stakeholders is a positive development for global trade, shipping and supply chains.

The reported reopening of the Strait of Hormuz and the de-escalation of geopolitical tensions are expected to improve the movement of goods, stabilize freight and insurance costs, and enhance predictability in international trade flows but also for our Indian exporters, thereby further providing boost to our exports in coming months as GCC is one of our key markets.

FIEO Chief further noted that engineering goods, petroleum products, electronic goods, drugs & pharmaceuticals, chemicals, gems & jewellery, textiles, rice, cotton products and plastics continued to drive India’s export growth during the period.

Highlighting the growing diversification of India’s export markets, Ralhan observed that India’s leading export destinations during April–May 2026-27 included the USA, UAE, Singapore, China, Netherlands, United Kingdom, Bangladesh, Tanzania, Germany and Saudi Arabia.

“The continued strong demand from both traditional and emerging markets reflects increasing global confidence in Indian products and services. The growing presence of Indian exporters in diverse geographies is helping strengthen India’s position in global trade and reducing dependence on a limited number of markets,” he added.

On imports side, the major sourcing partners for India during the period were China, Russia, USA, UAE, Saudi Arabia, South Korea, Singapore, Japan, Germany and Oman, while key imported commodities included petroleum products, electronic goods, machinery, gold, transport equipment, non-ferrous metals, coal, chemicals, plastics and vegetable oils.

FIEO President stated that the increase in imports of capital goods, machinery, electronics and industrial inputs indicates sustained economic activity, investment demand and manufacturing growth within the country.

He further emphasized that as India advances towards its aspiration of becoming a developed economy and a global manufacturing hub, exports will continue to play a critical role in driving economic growth, employment generation and foreign exchange earnings. The encouraging trade numbers at the beginning of the fiscal year reinforce confidence in achieving higher export growth during 2026-27.

FIEO expressed confidence that ongoing infrastructure improvements, PM Gati Shakti initiatives, digital trade facilitation measures, Free Trade Agreements (FTAs), production-linked incentive schemes and proactive export promotion efforts by Indian Missions abroad will further strengthen India’s export competitiveness.

FIEO reiterates its commitment to working closely with the Government, industry stakeholders and exporters to help achieve India’s long-term export ambitions and contribute significantly towards the vision of Viksit Bharat.