Exports

India’s Production-Linked Incentive (PLI) scheme for the automobile sector is materially reshaping the electric two-wheeler (e2W) ecosystem, accelerating domestic manufacturing, boosting localization and enhancing export competitiveness. By linking fiscal incentives to incremental output and advanced technology adoption, the policy has catalyzed capital investment across battery manufacturing, power electronics and vehicle assembly. Industry data indicate stronger supply-chain integration and improved economies of scale, positioning Indian manufacturers to compete globally.

India’s pharmaceutical exports are showing renewed strength, with industry leaders signaling confidence in achieving double-digit growth in the coming period. Rising global demand for affordable medicines, expanding market access, and improving supply-chain resilience have collectively supported the upward trajectory. Exporters are increasingly focusing on complex generics, specialty drugs, and regulated markets to drive value growth alongside volumes.

Mahindra & Mahindra has strengthened its international footprint with a significant export agreement to supply 35,000 units of its Scorpio Pik-Up to Indonesia. The order underscores the growing acceptance of Indian-made utility vehicles in overseas markets and highlights Mahindra’s strategy of expanding beyond its domestic stronghold. The deal is expected to support volume growth and enhance export-led revenues over the medium term.

The impending India-European Union Free Trade Agreement (FTA) is expected to significantly boost India’s footwear and leather exports, reducing tariffs and easing market access in one of the world’s largest consumer markets. Industry bodies project that the agreement will enable Indian manufacturers to enhance competitiveness, diversify export destinations, and increase revenues by Rs. 8,000–10,000 crore annually.

Global automotive major Stellantis is strengthening its export strategy by expanding shipments of its Jeep models from India, underscoring the country’s growing importance in its global manufacturing and supply chain network. The move reflects confidence in India’s cost-efficient production capabilities, skilled workforce, and improving logistics ecosystem. By leveraging its Indian operations, Stellantis aims to enhance scale, optimize costs, and serve select international markets more competitively.

India’s coffee exports recorded a notable increase in export value even as overall shipment volumes declined, reflecting rising global prices and a focus on specialty beans. According to industry data, the country earned higher revenues per tonne, offsetting the lower quantity shipped. Analysts attribute the trend to strong demand for premium Indian Arabica and Robusta varieties, favorable currency movements, and supply-side adjustments by growers.

Exports from the Indore Special Economic Zone recorded steady growth in the latest financial period, rising 8 percent year on year to cross Rs. 10,000 crore. The expansion reflects resilient demand across key sectors, improved manufacturing efficiency and supportive trade policies. Electronics, pharmaceuticals and engineering goods remained the primary contributors, while service exports also posted incremental gains. Officials attribute the performance to infrastructure upgrades, faster clearances and deeper integration with global supply chains.

India’s textile exports have continued to grow despite headwinds from international tariffs and trade barriers, underscoring the sector’s resilience and global competitiveness. Strong demand from key markets, product diversification, and government support through incentives and export promotion schemes have helped maintain momentum. Apparel, home textiles, and technical fabrics remain in high demand, while innovation in quality, design, and sustainable production has strengthened India’s positioning in global value chains.

The upcoming FY27 Union Budget is set to prioritize micro, small, and medium enterprises (MSMEs) by bolstering export support and enhancing competitiveness in global markets. Alongside, the government plans to allocate dedicated funds for critical minerals, reflecting a strategic push for self-reliance in key sectors like energy, electronics, and defense. Analysts anticipate incentives for MSMEs, including easier credit, export subsidies, and technological support, while the mineral funding aims to secure domestic supply chains and reduce import dependence.

India’s smartphone export sector recorded a remarkable 43.7% year-on-year growth, reaching $18.8 billion, reflecting the country’s emergence as a global manufacturing hub. The surge was driven by robust shipments to markets in the US, Europe, and Southeast Asia, underpinned by competitive production costs, government incentives under the PLI (Production Linked Incentive) scheme, and expanding domestic manufacturing capacity. Analysts view this growth as a sign of India’s increasing footprint in global electronics supply chains.