India–Finland Trade Grows 19% In FY26, Trade Deficit Narrows To $300–400 Million

New Delhi: Bilateral trade between India and Finland has grown 19 percent during April–December of FY26 compared to the same period last year. The growth reflects a new phase of momentum in economic ties between the two countries.

The development comes during the first official visit of Finnish President Alexander Stubb to India, which is expected to strengthen diplomatic and trade relations between the two nations.

Exports Drive Trade Expansion

According to a report by Rubix Data Sciences, India’s exports have played a major role in the recent growth of trade.

Indian exports to Finland rose 11 percent year-on-year during April–December FY26. The report noted that stronger export performance has helped improve the overall balance in trade between the two countries.

Both governments have also expressed a goal of doubling the current trade volume, and the presidential visit is expected to help turn diplomatic discussions into stronger economic partnerships.

Trade Deficit Shows Improvement

India’s trade deficit with Finland has also narrowed to around USD 300–400 million in recent years. This indicates a more balanced trade relationship.

India’s exports to Finland have increased significantly from USD 300 million in FY22 to about USD 600 million in FY24. At the same time, imports from Finland, which remained mostly between USD 800 million and USD 900 million from FY22 to FY25, saw a 24 percent year-on-year rise in FY26.

The increase in imports reflects higher demand in India for Finnish industrial equipment and technology products.

Changes In Export And Import Products

The report also highlighted a major change in India’s export basket. Heterocyclic compounds, a type of chemical product, increased sharply from 1 percent to 28 percent of exports, becoming the largest export category.

Exports of passenger and cargo vessels also rose to 10 percent, while the share of pharmaceutical products declined from 18 percent to 12 percent.

On the import side, nitrogen fertilisers remain the largest import but their share declined from 28 percent to 19 percent. Meanwhile, electronic integrated circuits stayed stable at 15 percent, and electrical transformers increased from 3 percent to 5 percent.

Imports of chemical wood pulp also increased from 1 percent to 4 percent, showing growing industrial connections between the two economies.

Finland’s Role In India–EU Trade

Despite the recent growth, Finland currently accounts for about 1 percent of India’s total goods trade with the European Union.

However, experts say the 19 percent growth in FY26 and the narrowing trade deficit show that the partnership is becoming more technology-driven and balanced, with stronger long-term potential for cooperation.