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

India's export sector has demonstrated remarkable resilience by achieving an all-time high of $863 billion in FY 2025-26. This milestone comes despite significant macroeconomic challenges, including escalating US tariffs and geopolitical instability in West Asia.

Resilience Amidst Global Volatility

The fiscal year 2025-26 was marked by substantial global disruptions, yet India's export ecosystem managed to maintain an upward trajectory. Ajay Bhadoo, Additional Secretary in the Department of Commerce, noted that while US tariff measures and the West Asia crisis created a difficult environment, the country’s ability to hit the $863 billion mark underscores its underlying strength.

A decade of steady growth is evident in these figures; India’s total exports have nearly doubled over the last ten years, rising from approximately $441 billion to the current record high. This growth has been powered by a diverse mix of high-value sectors, including engineering goods, petroleum products, electronics, pharmaceuticals, chemicals, and gems and jewellery.

Gujarat: The Engine of India's Export Growth

Gujarat has solidified its position as a cornerstone of India's outbound shipments, contributing nearly $110 billion to the national export total. The state's Special Economic Zones (SEZs) have become vital engines for investment and job creation, directly supporting the national visions of Make in India and Atmanirbhar Bharat.

Data from the Kandla Special Economic Zone (KASEZ) highlights the massive scale of this impact. Exports from Gujarat's SEZs surged from ₹21,79,808 crore in 2014-15 to ₹23,00,793 crore in 2025-26. Currently, Gujarat accounts for approximately 21% of India's total SEZ exports. Furthermore, investment within these zones has climbed from ₹21,22,654 crore to ₹22,28,624 crore, while employment has seen a massive jump from 63,475 to over 2.22 lakh jobs.

The Semiconductor Push and Future Roadmap

The government is aggressively expanding its manufacturing footprint through the promotion of new SEZs. A major highlight is the semiconductor industry, which is seeing significant institutional backing. Recently, a new SEZ was notified for Tata Semiconductor Manufacturing Private Limited in Dholera.

Gujarat is currently hosting four semiconductor-focused SEZs promoted by major players, including CG Semi Technologies, Kaynes Semicon, Tata Semiconductor Manufacturing, and Micron Technology. Moving forward, officials have outlined an ambitious roadmap for Gujarat's SEZs, targeting an annual export growth rate of 20% and a 10% annual increase in employment generation.

Key Takeaways