India’s latest trade data reveals a major structural shift in its geographical trade balance during the initial two months of fiscal year 2026-27. While India’s traditional trade surplus with the US and the Netherlands narrowed due to an absolute surge in American imports, its trade balances with emerging markets in Asia and Africa flipped decisively into hefty surpluses. Driven by a massive 172% export explosion, India’s trade surplus with Tanzania ballooned to $1.71 billion, while trade with Sri Lanka followed a similar trajectory as exports nearly tripled. Simultaneously, India’s electronics exports grew by 11.62% year-on-year to hit $5.09 billion in May, overwhelmingly driven by smartphone shipments to the United States, which now commands 57.5% of India’s total electronics export basket. Conversely, the UAE, historically India’s premier transhipment hub, saw its share of electronics intake plummet dramatically due to evolving routing challenges.