TN records highest export growth in the country in FY26; Kancheepuram ranked second among districts

CHENNAI: Tamil Nadu emerged as the fastest-growing exporting State in the country during FY26, registering a 13.7 per cent 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 Tamil Nadu's Kancheepuram district to become the country's second-largest merchandise exporting district. The district recorded 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 Tamil Nadu'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.

Apart from 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 availability 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 per cent 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 to maintain 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 per cent year-on-year, largely due to its heavy dependence on petroleum products. Maharashtra, meanwhile, registered a modest growth of 6.4 per cent.

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.