Ahmedabad: Gujarat retained its position as India’s largest exporting state for the sixth straight year in 2025-2026 despite a difficult global trading environment marked by higher US tariffs, weak demand across major economies and supply-chain disruptions. The state’s exports stood at about $110 billion during the financial year, marginally lower than $116.33 billion in FY25, according to data by the Directorate General of Foreign Trade (DGFT). Industry, however, views the performance as resilient given the multiple external shocks that affected global trade.Petroleum products continued to dominate the export basket, followed by gems and jewellery, pharmaceuticals, organic chemicals, engineering goods, automobiles, textiles, ceramics and agro-chemicals. Exporters say currency movements, market diversification, and operational efficiencies helped cushion the impact of weaker demand in traditional markets.
Gujarat exports
The performance came even as exporters grappled with pricing pressures, volatile freight rates, shifting global demand and tariff uncertainty. A weaker rupee offered some support to export competitiveness, while companies increasingly looked beyond traditional markets to expand their presence in West Asia, Africa, Latin America, and Southeast Asia. Industry representatives attribute Gujarat’s export resilience to its diversified manufacturing base, port infrastructure, and special economic zones (SEZs).According to Dr Rajendra Prasad Sharma, head of Indian Institute of Foreign Trade (IIFT), GIFT City campus, Gujarat leads in exports thanks to its diversified industrial base and strong global-market orientation, which helps the state avoid overdependence on any single sector.With India’s longest coastline and a large network of efficient ports, Gujarat benefits from high-capacity global connectivity. SEZ-led industrial clusters, industrial corridors, reliable infrastructure, uninterrupted power supply, and steady foreign direct investment (FDI) have further strengthened competitiveness, he added.Over the past few years, Gujarat has also seen an increase in iron and steel products, with the category now ranking as the fifth biggest. Viral Shah, CEO of Shah Metacorp Ltd, said, “Gujarat-based manufacturers are exporting their products to US, Europe, West Asia, and Southeast Asian countries. Many countries are reducing imports from China, which is directly helping us.”
Gujarat exports
Pharmaceuticals: Ahmedabad emerges as country’s top exporting districtDGFT officials said Gujarat has reinforced its position as India’s premier pharmaceutical hub, with Ahmedabad emerging as the top-performing district in the drugs and pharmaceuticals sector. The district recorded exports worth $2.58 billion in FY26, reflecting strong manufacturing capacity and sustained demand in overseas markets.US, UK, South Africa, Brazil and France were India’s top five export destinations for the pharmaceutical sector during FY26. Officials noted that nearly 50% of India’s pharmaceutical exports are shipped to highly regulated markets such as North America and Europe, underscoring the importance of compliance, product quality and documentation standards.Industry representatives said Ahmedabad is well placed to capture a rising share of India’s pharma exports due to its existing manufacturing scale, established supplier ecosystem and strong regulatory track record. Chirag Doshi, former chairman of IDMA Gujarat state council, said Gujarat has consistently remained a leading pharmaceutical manufacturing and exporting state. He said, “The state has more than 100 manufacturing plants approved by US Food and Drug Administration (USFDA) and a large number of units that are certified by World Health Organization’s Good Manufacturing Practices (WHO-GMP). Gujarat’s ability to supply quality medicines at affordable prices has made it a key supplier in global markets.”Engineering exports boom despite higher tariffsEngineering exporters in Rajkot say the overall impact of war on the city’s exports has been minimal, as manufacturers diversified into European markets while continuing to meet strong demand from US.According to Rajkot Chamber of Commerce and Industry (RCCI), there has been no significant change in the overall value of exports compared with the previous financial year.Industry representatives said the limited impact was largely due to sustained demand in US for specialised engineering products, particularly investment castings, and exporters’ successful efforts to expand their presence in Germany, France, Italy and other European countries.Rajkot is one of India’s major hubs for investment casting, a precision manufacturing process used to produce complex metal components for sectors such as defence, aerospace, railways, and automobiles.“There are products that the US market cannot easily source elsewhere. In investment casting, we make components strictly according to the client’s specifications and design requirements. These precision-engineered parts are used in defence, aerospace, railways, and automotive industries,” said Amrut Gadhiya, president of the Shapar-Veraval Industrial Association.Rajkot has around 250 investment casting units, making it one of the country’s largest clusters for the sector. The city is also a major exporter of auto components.
Dhandho exports
Textile exporters absorb losses to retain long-standing customersGujarat’s textile exporters ended FY26 with little growth as higher US tariffs and weak global demand weighed on shipments. Industry representatives estimate exports declined by 3-4% during the year, with many manufacturers absorbing losses to retain long-standing overseas customers rather than passing on higher costs.Rahul Shah, co-chairman of the GCCI textile task force, said, “The industry has seen little export growth over the past few years. There is enough room for growth. In FY26, the US tariff measures remained the biggest challenge, particularly over four or five months when exporters chose to absorb part of the additional cost to preserve customer relationships,” he added.Industry players also acknowledged that a depreciating rupee provided some cushion by improving pricing competitiveness, partially offsetting the tariff impact.While US and Europe remained key destinations, exporters increased their focus on West Asia and Africa. Home textiles and apparel continued to account for the bulk of textile exports, with the industry expecting demand to improve as trade conditions stabilise and new market opportunities emerge.Pricing pressure outweighs tariff impact for chemical makersGujarat’s chemicals sector, one of the state’s largest export earners, witnessed a 5-7% decline in exports during FY26 as weak global demand weighed on shipments. Industry representatives say geopolitical tensions, elevated gas prices, appreciation of the US dollar and shortages of key raw materials pushed up production costs and squeezed margins.Ankit Patel, vice-chairman of Chemexcil, said, “There was a decline in chemical exports in FY26, mainly due to US tariff issues. However, Gujarat-based manufacturers and exporters are actively looking to diversify their export markets. Agrochemical and organic chemical exports will remain firm in FY27 as well.”Bhupendra Patel, chairman of Chemexcil Gujarat, said exporters also faced pricing pressure, with buyers seeking lower prices amid slowing demand. “There were significant order cancellations during the year. The challenge was not the availability of material but the pressure on prices and margins,” he said, adding, “Alongside fluctuating tariffs, exporters were also affected by volatile input costs, currency movements and subdued demand across key overseas markets.”Industry expects demand to improve as global economic conditions stabilise, but says lower logistics costs and stronger market access will be crucial for restoring export growth.Export mix and EV push drive up automobile exportsBucking the trend of global uncertainty, automobile exports from Gujarat performed well in FY26. Passenger vehicle (PV) exports were led by Maruti Suzuki’s Hansalpur plant, which accounts for 47% of the company’s total exports, including PVs and commercial vehicles (CVs). Tata Motors’ Sanand plant also exported its compact SUV model from Gujarat. Other two-wheeler manufacturers, namely Honda Motorcycle and Scooters India Limited, Hero MotoCorp, and Ather Energy, which have a manufacturing presence here, also posted sizeable growth in their exports.Industry experts attribute the strong export performance to a shift in product mix and improving demand across key overseas markets. “The market in South Africa accounted for a sizeable chunk of exports from Gujarat. Overall, the demand for EVs as well as SUVs has remained strong across the globe. Both these factors have contributed to a rise in exports,” said a source.Rahul Bharti, senior executive officer, Maruti Suzuki, said, “We export vehicles to more than 100 countries from the Hansalpur plant. Gujarat’s pride is the e Vitara which has clocked about 37,000 exports to 56 countries, UK being the topmost destination.”—With inputs from Nimesh Khakhariya
