Monday 15 / June / 2026
New Delhi: India is becoming more export-dependent on advanced G7 markets while reducing import dependence on them, which indicates both market diversification on the import side and export concentration in high-value developed economies, as per a Rubix report.
India's merchandise trade with G7 countries rose 6.1 per cent year-on-year to $263 billion in FY2026. "Total goods trade (exports + imports) with G7 countries cumulatively stood at $263 billion in FY2026, showing 6.1% increase over the previous year," the report noted.
However, the growth was accompanied by a narrowing of the country's trade surplus with the bloc, which dropped to $13 billion from $28 billion in FY2025, as imports rose while exports remained largely stagnant.
Furthermore, India's exports to G7 countries remained flat at $138 billion in FY2026, while imports increased 14 per cent to $125 billion.
Despite the decline in surplus, India continues to maintain a trade surplus with four G7 countries -- the United States, Canada, Italy, and the United Kingdom.
"The G7's share in India's total goods exports rose from 29% in FY2021 to 31% in FY2026, whereas its share in India's total goods imports declined from 18% to 16% over the same period," the report said.
Apart from this, India is strengthening its economic ties with the G7 nations through free trade agreements (FTAs) with the UK and the EU, and bilateral trade discussions with the US. The country is emerging as a high-value manufacturing hub in G7 markets, driven by exports of smartphones and other telecom equipment across key countries, including US, UK, Germany, France, and Italy.
Amongst G7 nations, "US remains India's largest export destination" with exports surging from "$51.6 billion in FY2021 to $87.3 billion in FY2026." Additionally, US emerged as India's largest import partner with "$53.5 billion in FY2026, recording 13% CAGR from FY2021 to FY2026."
According to the report, India is emerging as a global manufacturing and high-value production hub, with telecom equipment, especially smartphones, becoming a key driver across major markets including US, UK, Germany, France, and Italy.
"India's G7 import profile demonstrates that the G7 bloc functions as an important supplier of technology-intensive goods and essential industrial inputs for the Indian economy," the report added.
