India’s growing export sector
India (Commonwealth Union)_ India’s export sector posted a robust growth momentum in the April-June quarter of FY27, underlining the country’s growing stature in global trade. The export growth was seen across a range of sectors, driven by increased demand for Indian goods, better manufacturing performance and deeper market penetration. Accordingly, engineering goods, electronics, chemicals, pharmaceuticals, textiles and agricultural products remained key contributors, highlighting India’s ability to supply both traditional and high-value products to international markets.
India’s total exports of merchandise and services reached an estimated US$232.73 billion during the quarter, an increase of 11.37% compared with the same period last year. Merchandise exports alone rose 15.92% to US$129.32 billion, while non-petroleum exports climbed 12.44% to US$106.30 billion. Imports also grew to US$270.15 billion, leading to a combined merchandise and services trade deficit of US$37.42 billion. Despite the wider deficit, export growth underlined the strength of India’s industrial base and its expanding presence in global markets.
Top 10 leading sectors
Manufacturing-led exports continued to dominate India’s trade performance during the quarter. Engineering goods, petroleum products and electronics remained the country’s biggest export earners, while pharmaceuticals, chemicals, gems and jewellery, textiles and agricultural products strengthened India’s position in global value chains.
The top 10 export commodities by value during April-June FY27 were:
- Engineering Goods: US$34.14 billion
- Petroleum Products: US$23.02 billion
- Electronic Goods: US$15.20 billion
- Drugs & Pharmaceuticals: US$8.10 billion
- Organic & Inorganic Chemicals: US$7.90 billion
- Gems & Jewellery: US$7.26 billion
- RMG of All Textiles: US$3.67 billion
- Rice: US$3.03 billion
- Cotton Yarn/Fabrics Made-ups: US$2.97 billion
- Plastic & Linoleum: US$2.52 billion
Gem and jewellery exports
The gems and jewellery sector recovered strongly in June 2026 as overseas demand improved. Gross exports increased by 26.51% year-on-year to US$2.21 billion, driven mainly by higher shipments of gold jewellery, cut and polished diamonds, and lab-grown diamonds. Gold jewellery exports alone jumped 54.5%, supported by a sharp rise in studded jewellery exports. Although exports for the April-June quarter remained almost unchanged at US$6.61 billion, the June rebound signalled renewed confidence in international markets.
Engineering goods exports
Engineering goods remained India’s largest export category and continued to benefit from growing manufacturing activity. Exports increased 18.1% during the quarter and accounted for more than one-fourth of total merchandise exports. Demand for machinery, transport equipment, industrial products and capital goods helped strengthen the sector, making it one of the biggest drivers of export growth.
Petroleum product exports
Petroleum product exports staged a strong recovery, rising 35.2% after a weaker performance in the previous financial year. While global crude prices and refining margins continue to influence the sector, petroleum products remained India’s second-largest export category during the quarter.
Electronics exports
Electronics has become one of India’s fastest-growing export industries. Exports increased from US$38.6 billion in FY25 to nearly US$48 billion in FY26 before recording another 22.6% growth in the first quarter of FY27. Imports also rose sharply, reflecting continued dependence on imported components and machinery. However, the sector highlights India’s growing manufacturing ecosystem and competitiveness in global electronics manufacturing.
Pharma exports
India continues to be among the world’s leading suppliers of generic medicines, vaccines, biosimilars and active pharmaceutical ingredients. Increasing demand for affordable healthcare products is leading to opportunities across both developed and emerging markets. The sector is expected to expand further by 2035 through increased exports of speciality medicines, vaccines, medical devices, nutraceuticals and advanced formulations, supported by technology upgrades and broader access to regulated markets.
Textile exports
India’s textile industry continues to benefit from its integrated supply chain, covering everything from raw fibre to finished garments. Growing global demand for value-added apparel, technical textiles, sportswear and sustainable clothing is expected to support exports over the coming decade. Organic cotton garments and recycled textiles are also expected to be key growth segments through 2035.
Organic & Inorganic Chemicals exports
Chemical exports increased by 19.42% in June 2026 to USD 2.77 billion, indicating continued global demand. India’s chemical exports go to more than 175 countries, and the country has established a reputation for reliable supply and a wide product range. The industry is increasingly focusing on specialised products and innovation while strengthening its global presence.
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Rice export
India maintained its position as the world’s leading rice exporter. Rice exports reached 16.48% in June 2026. Total rice shipments in 2025 were 21.55 million metric tonnes after the lifting of export restrictions. Basmati exports also touched record levels with strong demand from Iran, the UAE and the UK. Competitive pricing and stable demand continue to underpin India’s leadership in global rice trade.
Cotton exports
Cotton yarn and textile exports continued to record healthy growth as global demand remained strong. Monthly exports reached US$1.01 billion, up 8.82% year-on-year. Industry estimates also point to a 9% increase in sector revenue, supported by stable pricing and stronger international orders.
Plastic exports
India’s plastic industry has grown into a major export sector with products ranging from packaging materials and medical supplies to pipes, films and household goods. Valued at US$26.61 billion in 2025, the industry is projected to reach US$44.59 billion by 2030. More than 2,500 exporters and around 30,000 processing units, most of them small and medium enterprises, continue to support export growth and employment.
India’s top export destinations – Asia and Africa
India’s export growth was led increasingly by Asia and Africa. The United States also remained the largest export destination, accounting for 19.7% of shipments, although growth was largely unchanged. Asia emerged as the strongest growth region, with exports to Singapore surging 101.2%, while China grew 27.5%. Shipments to Malaysia, Vietnam, Sri Lanka and Hong Kong also recorded strong gains. Exports to Tanzania, Mozambique, South Africa and Kenya in Africa grew sharply, reflecting rising trade ties with emerging economies.
ASEAN and African markets continue to present new opportunities for Indian exporters in engineering goods, pharmaceuticals, textiles, agriculture and manufactured products. Government initiatives to improve market access, deepen trade partnerships and support exporters are helping businesses diversify beyond traditional markets. The faster growth of emerging economies is also helping to reduce dependence on Western markets and strengthen India’s role in global supply chains.
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Overcoming challenges
India’s exports continue to grow despite global economic uncertainty. The growth is fuelled by enhanced manufacturing, competitive pricing, improved logistics and better supply chains. More companies are going digital and opening up new markets, helping to sustain export momentum in many sectors.
The future
India’s global trade strategy is being shaped with the help of policy changes and free trade agreements. India has signed 19 agreements, including European Union and United Kingdom deals, and is in the process of signing free trade agreements in the near future with other nations. Through these new contracts, the country is improving its accessibility to foreign markets and integrating even further into the global chain of production.
