India’s Exports Hit Record $863 Billion in FY26 Amid Global Headwinds

India’s export sector has achieved a historic milestone, reaching a record high of $863 billion in the 2025-26 fiscal year. This remarkable feat comes despite significant global economic disruptions, including US tariff measures and the ongoing West Asia conflict, showcasing the deep resilience of the nation's trade ecosystem.

Resilience Against Global Volatility

The fiscal year 2025-26 was marked by considerable geopolitical and economic challenges. According to Ajay Bhadoo, Additional Secretary in the Department of Commerce, the combination of shifting US trade policies and the Middle East crisis created a difficult landscape for international trade. However, India managed to overcome these hurdles, effectively nearly doubling its total exports over the last decade from approximately $441 billion to the current $863 billion.

Key sectors driving this unprecedented growth include engineering goods, petroleum products, electronics, pharmaceuticals, gems and jewellery, and chemicals. The ability of these diverse industries to maintain momentum suggests a robust diversification of India's export basket.

Gujarat: The Engine of Export Growth

Gujarat has solidified its position as a premier export hub for the country. The state contributed nearly $110 billion to India's outbound shipments, playing a pivotal role in the national trade surge. The impact of Special Economic Zones (SEZs) in the state is particularly noteworthy.

Data shared by Dnyaneshwar B Patil, Zonal Development Commissioner of the Kandla Special Economic Zone (KASEZ), reveals a massive scale-up in SEZ performance. Exports from Gujarat's SEZs rose from ₹21,79,808 crore in 2014-15 to ₹23,00,793 crore in 2025-26. Furthermore, Gujarat now accounts for approximately 21% of India's total SEZ exports. This growth is mirrored in employment, which has surged from 63,475 to over 2.22 lakh jobs in the same period.

The Semiconductor Push and Future Roadmap

The Indian government is heavily leveraging SEZs to realize the visions of 'Make in India' and 'Viksit Bharat 2047.' A significant component of this strategy is the expansion into high-tech manufacturing, specifically semiconductors.

The government has recently notified several semiconductor-focused SEZs in Gujarat to attract global and domestic leaders. Notable players include Tata Semiconductor Manufacturing Private Limited, which is setting up an SEZ in Dholera, alongside CG Semi Technologies, Kaynes Semicon, and Micron Technology.

Looking ahead, the roadmap for Gujarat's SEZs is ambitious, with officials targeting an annual export growth rate of 20% and a 10% annual increase in employment generation. This strategic focus on advanced manufacturing is expected to keep India on a high-growth trajectory in the global supply chain.

Key Takeaways