India’s export landscape transformed dramatically in 2026, with the United States holding firm as the top destination at $88 billion, while UAE surges via CEPA-driven petroleum and gems trade worth $35.6 billion. Total exports hit a record $825.3 billion in FY25, extending into H1 FY26 at $418.5 billion, fueled by electronics, pharma, and non-oil sectors amid global diversification.
US Dominates with China+1 Boost
The US remains India’s export powerhouse, absorbing $88 billion in electronics, pharmaceuticals, and textiles under the China Plus One strategy. High-tech goods and consumer products thrive despite tariffs, cementing bilateral trade resilience.
This shift underscores India’s manufacturing pivot, capturing supply chains from rivals.
UAE Emerges as Re-Export Giant
UAE ranks second at $35.6 billion, propelled by CEPA easing gems, jewelry, basmati rice, and refined petroleum flows to GCC and Africa. Acting as a Middle East gateway, it re-exports Indian agro-products and spices effectively.
Petroleum dominates, but jewelry craftsmanship solidifies long-term ties.
Europe via Netherlands Gains Traction
Netherlands secures third spot with $21.6 billion, channeling chemicals, machinery, and electronics through Rotterdam port to EU markets. Facing CBAM carbon taxes, Indian exporters adapt green standards for sustained access.
Germany follows at $9.8 billion for auto parts, boosting Europe’s industrial reliance.
Asia’s Mixed Fortunes: China to Singapore
China imports $16.7 billion in chemicals and iron ore, while Singapore takes $14.4 billion in machinery and pharma as a Southeast hub. UK at $12.9 billion favors apparel and gems post-Brexit; Bangladesh absorbs $11.1 billion cotton and power.
Saudi Arabia’s $11.6 billion focuses on rice and engineering goods.
Emerging Stars and Challenges Ahead
Hong Kong ($8.2 billion gems) rounds top 10, but Spain (54.5% growth) and Tanzania (126%) signal diversification into Africa and Latin America. PLI schemes propel electronics and pharma globally, targeting Brazil and South Africa next.
Government incentives combat trade barriers, positioning India for $1 trillion exports by 2030.
