Hyderabad: Geopolitical tensions and trade uncertainties are beginning to cast a shadow over Telangana’s export momentum, with nearly half of the state’s outbound shipments tied to markets currently facing instability or policy uncertainty.Out of the ten major export destinations for Telangana, five are currently experiencing turmoil or have uncertain trade relations with India. These countries include the United States, Saudi Arabia, Kuwait, Bangladesh and the United Arab Emirates. Notably, nearly 50 per cent of Telangana’s exports are concentrated in these markets.A closer look at the top export destinations shows the US leading with 23.64%, followed by the UAE at 11.74% and Saudi Arabia at 6.74%. Other key markets include China (3.69%), France (3.38%), the UK (2.72%), Turkey (2.32%), the Czech Republic (1.95%), Bangladesh (1.83% and Kuwait (1.75%).The concentration of exports in these regions underscores the risks posed by ongoing tensions in West Asia and uncertainty surrounding trade agreements, experts say.Despite these emerging headwinds, Telangana’s export performance has remained robust. In 2024–25, merchandise exports rose to Rs 1,61,843 crore, marking a 39.3% increase from Rs 1,16,182 crore in 2023–24. This growth has been driven by sectors such as aircraft and spacecraft parts, pharmaceutical products, organic chemicals, and electrical and engineering goods.Alongside these, agricultural and processed food exports continue to play a significant role. “In terms of agricultural products, we have about 500 registered exporters. However, there is a slowdown in exports to Gulf countries and other nations where trade agreements have not yet been finalised,” said R. P. Naidu, assistant GM at the Agricultural and Processed Food Products Export Development Authority (APEDA).As per NITI Aayog’s Export Preparedness Index 2024, Telangana ranks eighth overall and second among landlocked states. According to the Logistics Ease Across Different States (LEADS) 2024 report, Telangana has been placed in the ‘Achievers’ category among landlocked states.Exporters say rising logistics costs are adding to the strain. K. Nageswara Rao, technical head at Sam Agritech Limited, said: “We export tonnes of pomegranates to Gulf countries. However, we are finding it difficult due to increased freight charges. We are still shipping to Gulf countries via Europe to honour our commitments to our long-standing partners, but this will be reflected in next year’s balance sheet. We hope the situation will stabilise soon.”He added: “We are receiving more orders now because others are unable to afford the flight charges.”Shipping constraints are also affecting other segments. According to Y Ramana, GM of Eggway International Asia Private Limited, “Vessel space has become very difficult to secure for exports, and shipping charges have become exorbitant. We export egg powder and frozen egg liquid to Gulf countries, including Dubai, Saudi Arabia and Kuwait. There is currently a significant lull in business.”The impact is visible across categories. A city-based chocolate exporter said: “There is a dip in orders, but both air and sea freight charges remain high.
