India crossed $776 billion in total merchandise and services exports in FY2024–25, making it one of the fastest-growing export nations in the world. With the Foreign Trade Policy 2023–28 in full swing and new Free Trade Agreements opening zero-duty access to 50+ countries, Indian exporters have never had more opportunity.

This guide breaks down the top export product categories from India in 2026 — what they are, which countries buy them, what makes India competitive, and how you can enter each sector.

Refined petroleum products — diesel, jet fuel, petrol, naphtha, and lubricants — consistently rank as India’s single largest merchandise export. India’s massive refining capacity, led by Reliance, Indian Oil, and BPCL, processes crude oil imported from the Middle East and Russia into refined products exported globally.

India’s refineries have a combined capacity of over 250 million tonnes per annum, making India one of the world’s top five refining nations. The Jamnagar complex alone is the world’s largest single-location refinery.

Engineering goods is India’s most diverse export category, encompassing iron and steel products, industrial machinery, auto components, capital equipment, ships, aircraft parts, and miscellaneous manufactured products. It is the sector where India’s manufacturing push through PLI (Production-Linked Incentive) schemes is showing the most visible results.

India dominates the global gems and jewellery market. Surat processes over 90% of the world’s rough diamonds, while Jaipur is the global centre for coloured gemstones, and Mumbai handles the bulk of gold jewellery exports. The UAE CEPA, which gives Indian gems and jewellery zero-duty access to the UAE, has significantly boosted export volumes since 2022.

India exports cut & polished diamonds, plain gold jewellery, studded jewellery, silver articles, and coloured gemstones. The sector employs over 4.64 million people, making it a critical component of India’s employment-intensive export basket.

India is the world’s largest supplier of generic medicines, supplying over 50% of Africa’s generic requirements, 40% of generic demand in the USA, and 25% of all medicines used in the UK. This is not a niche — India is the backbone of global affordable healthcare.

The sector spans finished dosage formulations (FDFs), Active Pharmaceutical Ingredients (APIs), vaccines, biosimilars, and Ayurvedic/herbal products. India has over 3,000 pharma companies and 10,500 manufacturing units, more US FDA-approved plants outside the USA than any other country.

India is the world’s 4th largest agrochemical producer and a growing force in specialty chemicals, dyes, pigments, and industrial chemicals. The chemicals sector includes basic chemicals, dyes & intermediates, agrochemicals (pesticides, herbicides, fungicides), and plastics & polymers.

India produces over 80,000 commercial products across the chemicals sector. Gujarat’s Dahej and Ankleshwar chemical clusters are among Asia’s largest. The China+1 strategy pursued by global companies is driving significant FDI into India’s specialty chemicals sector.

India is the world’s 2nd largest textile and apparel exporter and the largest producer of cotton globally. The sector spans cotton yarn, fabric, readymade garments (RMG), home textiles, technical textiles, and man-made fibre (MMF) products.

In 2026, India’s textiles sector is receiving a significant boost from the impending India–UK FTA (the UK currently levies 9.6–12% duty on Indian garments) and from the PLI scheme for MMF apparel and technical textiles. Major export clusters include Tiruppur (knitwear), Surat (synthetics), Ludhiana (hosiery), and Jaipur (handicraft textiles).

India is the world’s largest rice exporter, 2nd largest wheat exporter, 2nd largest sugar exporter, and a dominant supplier of spices, seafood, tea, coffee, and processed foods. Agriculture exports exceeded $53 billion in FY25 despite global headwinds, driven by record rice and spice shipments.

India’s IT and software services sector is in a league of its own. With over $254 billion in services exports in FY25, it is the single largest source of India’s export earnings. Bengaluru, Hyderabad, Pune, Chennai, and Noida are home to the world’s largest concentration of software engineers.

In 2026, AI, cloud migration, cybersecurity, and GCC (Global Capability Centres) are the fastest-growing segments. Over 1,700 GCCs of Fortune 500 companies are based in India, employing 1.9 million people. NASSCOM projects India’s tech sector to reach $500 billion by 2030.

Electronics is the most exciting new export growth story from India in 2026. After years of being a net importer, India has transformed into a meaningful electronics exporter, primarily driven by the iPhone manufacturing revolution triggered by Apple’s shift to India through Foxconn and Tata Electronics.

India’s electronics exports have grown from $12 billion in FY22 to over $29 billion in FY25. Mobile phones alone now account for over $15 billion, with Apple iPhones the dominant product. Samsung, Dixon Technologies, and Tata Electronics are the key manufacturers driving export volumes.

India is the world’s 2nd largest leather producer and 2nd largest footwear manufacturer, accounting for 13% of the world’s leather production. The sector exports finished leather, footwear, leather garments, and leather goods (handbags, belts, saddlery). Key clusters: Chennai (finished leather), Agra (footwear), Kolkata (leather goods), and Kanpur (industrial leather).

The upcoming India–EU FTA is expected to be transformational for leather and footwear, eliminating the current 3.7–17% EU tariff on Indian leather goods. CLE (Council for Leather Exports) is the key EPC for this sector.

How to start exporting from India in 2026

Whether you are targeting one of the sectors above or a niche product, here is the universal starting framework for new Indian exporters:

Top export sectors at a glance

Frequently asked questions

What is India’s number one export product in 2026?

In terms of merchandise goods, engineering goods (~$109B) and refined petroleum products (~$96B) are India’s top two merchandise export categories. However, if services are included, IT and software services (~$254B) is by far India’s largest export earner overall, making it a critical pillar of India’s $2 trillion export target.

Which is the fastest-growing export sector from India in 2026?

Electronics and hardware is the fastest-growing export sector, driven by Apple iPhone manufacturing through Foxconn and Tata Electronics. Electronics exports have more than doubled from $12 billion in FY22 to over $29 billion in FY25. Chemicals and specialty pharma are close behind, benefiting from China+1 procurement strategies by global companies.

What are the best export products for small businesses in India?

For MSMEs and individual exporters, the most accessible entry points are spices and food products (low capital requirement, strong APEDA support), handicrafts and home textiles (high margins, strong demand from USA and EU), herbal and Ayurvedic products (rapidly growing globally post-COVID), and readymade garments from established clusters like Tiruppur, Surat, or Ludhiana.

Which countries buy the most from India?

India’s top export destinations in 2026 are the USA (~$80B), UAE (~$35B), Netherlands (~$18B), China (~$16B), and the UK (~$12B). The USA and UAE together account for roughly 30% of India’s merchandise exports. For services, the USA alone accounts for over 60% of India’s IT exports.

What government schemes help Indian exporters in 2026?

Key schemes include RoDTEP (duty remission on exports), Interest Equalisation Scheme (subsidised export credit at 3–5% below market rate), EPCG (duty-free import of capital goods for export production), PLI schemes (sector-specific production incentives for electronics, pharma, textiles, and 10 other sectors), and MAI/MDA funds from DGFT for market development and trade fair participation.