CHENNAI: Tamil Nadu emerged as the fastest-growing exporting State in the country during FY26, registering a 13.7% year-on-year increase in merchandise exports. The State's exports rose to $59.3 billion, driven largely by robust growth in smartphone and electronics shipments, reinforcing its position as one of India's leading manufacturing hubs.
The presence of leading electronics contract manufacturers such as Foxconn and Pegatron also propelled Kancheepuram district to become the country's second-largest merchandise exporting district, recording exports worth $26.4 billion, trailing only Jamnagar, which topped the list with merchandise exports valued at $36.6 billion.
The strong performance comes despite global economic uncertainties and subdued international demand. Industry experts attribute the growth to the state's expanding electronics manufacturing ecosystem, backed by large investments from global manufacturers and a well-developed supplier network. The State has also retained its leadership in electronic goods exports, with smartphones accounting for a significant share of outbound shipments.
Besides electronics, sectors such as automobiles, auto components, engineering goods, textiles and medical devices also contributed to the State's export growth. Continued investments in manufacturing infrastructure, skilled workforce and policy support have helped Tamil Nadu strengthen its export base over the past few years.
The State's export growth far outpaced India's overall merchandise export growth, which stood at under one% in FY26, according to Commerce Ministry data. India's merchandise exports during the financial year were valued at $441.78 billion, while total exports, including services, touched $860.09 billion.
Officials and industry representatives believe Tamil Nadu is well placed to sustain its export momentum as fresh investments continue to flow into electronics manufacturing, semiconductor-related industries and advanced manufacturing. The State is also expected to benefit from global supply chain diversification, with multinational companies expanding production capacity in India.
While electronics remained the principal growth driver, industry observers noted that continued diversification across manufacturing sectors would be essential for high export growth amid evolving global trade conditions.
While Gujarat and Maharashtra remained India's top exporting States, their export growth was relatively muted in FY26. Gujarat's merchandise exports declined by 5% year-on-year, largely due to its heavy dependence on petroleum products. Maharashtra, meanwhile, registered a modest growth of 6.4%.
Karnataka emerged as the second-fastest-growing exporting State, recording merchandise exports worth $34.4 billion and an annual growth rate of over 12 per cent. In contrast, Telangana witnessed a sharp decline in exports, with merchandise shipments falling 27 per cent from $19.1 billion in FY25 to $13.9 billion in FY26.
+
SETTING A RECORD
State's exports rose to $59.3 billion, driven largely by smartphones and electronics
Kancheepuram country's second-largest merchandise exporting district with exports worth $26.4 billion
Growing electronics manufacturing ecosystem, large global investments and well-developed supplier network played key roles
State well placed to sustain its export momentum as fresh electronics and semiconductor investments continue to flow
State likely to benefit from global supply chain diversification