India's export growth driven largely by non-oil shipments, USD 1 trillion milestone achievable soon: IIFT Vice-Chancellor
New Delhi, November 13
India's robust export growth is being driven largely by non-oil shipments, particularly electronic goods and mobile phones, putting the country on a promising trajectory to cross the USD 1 trillion export milestone sooner than expected, said K. Rangarajan, Vice-Chancellor of the Indian Institute of Foreign Trade.
Speaking exclusively to ANI on Friday, Rangarajan said the latest trade figures reflect genuine growth in India's exports, although factors such as a weaker rupee, higher petroleum exports and a favourable base effect may have also contributed.
"Definitely, we are on a very promising track because mostly the growth has been contributed by the non-oil exports. There's no doubt about it," he said.
His remarks came after the Ministry of Commerce and Industry released India's latest trade data, showing that cumulative overall exports, comprising merchandise and services, reached an estimated USD 568.84 billion during April-October FY27, registering a growth of 16.66 per cent over the corresponding period last year.
For October 2026 alone, India's overall exports were estimated at USD 89.99 billion, reflecting a 29.90 per cent increase from USD 69.27 billion in October 2025.
Merchandise exports surged 45.06 per cent to USD 49.47 billion, while services exports were estimated at USD 40.51 billion during the month.
Rangarajan highlighted that electronic goods, particularly mobile phones, had contributed significantly to export growth.
He also acknowledged that the relatively weak base of October 2025, when the United States was discussing 50 per cent tariffs, could have influenced the growth figures, but maintained that its impact was not substantial.
Highlighting the role of Free Trade Agreements (FTAs), Rangarajan said the government's aggressive pursuit of trade partnerships was encouraging Indian industries to utilise emerging export opportunities.
He identified the government's FTA initiatives as a major driver of export growth, followed by easing geopolitical tensions and improved confidence following the US elections.
On India's prospects of crossing USD 1 trillion in exports, he said, "Probably yes we may be definitely crossing that 1 trillion mark very soon."
However, Rangarajan cautioned that the impact of export growth on India's GDP would also depend on crude oil prices, given the country's high dependence on oil imports.
He said sustained oil prices below USD 100 per barrel could help reduce India's import bill and support economic growth, provided the declining trend continues.
— ANI
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