India’s export diversification gathered pace in FY26, with ships and boats, telecom equipment, pulses, marine products, graphite and explosives emerging as key growth drivers. Exporters expanded into new markets and introduced fresh product-country combinations, according to an ET report.
An analysis by the commerce department showed that India added 1,821 new principal commodity–country combinations during the year, generating incremental exports of $202.2 million.
“The trend signals a gradual move away from traditional commodity-led growth toward wider participation across high-value manufacturing, engineering, agri-processing and technology-driven sectors,” an official was quoted as saying.
This comes as India’s merchandise exports reached $441.8 billion in 2025–26, marking a 0.9% increase over the previous fiscal.
Ships, boats and floating structures led the expansion, contributing $57 million in additional exports across 19 new markets. Telecom instruments entered 20 new markets, generating $5.8 million, while nuclear reactors, industrial boilers and related parts added $14.3 million from 13 markets.
India also broadened its precious metals exports, adding 17 new destinations for gold and jewellery and 19 for silver.
Handloom products saw the widest market expansion, entering 29 new countries, followed by other oil seeds with 24.
Agriculture and food exports diversified further, with fresh fruits and non-basmati rice gaining traction in new markets. Emerging segments such as aircraft and spacecraft components, along with consumer electronics, also saw rising global acceptance.
Regionally, export growth was spread across Asia, Africa and Latin America. North America remained the largest destination, accounting for $97.7 billion, or 22.1% of total exports.
The sharpest growth came from Northeast Asia, where exports rose 21.6% to $41.6 billion, increasing the region’s share to 9.4%.
“Seven of the eight countries in the region recorded positive growth, reflecting stronger demand for Indian electronics, engineering goods, chemicals and industrial products,” the official added.
Exports to Latin America grew 7.8% to $16.4 billion, accounting for 3.7% of the total.
