Tamil Nadu has emerged as the top-performing state in India in terms of merchandise exports growth, with a 13.7% year-over-year (YoY) increase in FY26, reaching $59.3 billion. This growth was primarily driven by the state's strong electronics exports sector.
Electronics Exports Drive Growth
The state's electronics exports, valued at $19.9 billion, grew by 36% YoY, significantly contributing to the overall export growth. Smartphones and telecom instruments exports to the US were key drivers of this growth, with Tamil Nadu now accounting for 42% of India's total electronic exports.
- Total exports: $59.3 billion
- Electronics exports: $19.9 billion
- Growth rate: 13.7% YoY
- Share of India's electronic exports: 42%
Regional Export Performance
Kanchipuram district in Tamil Nadu, home to major contract manufacturers like Foxconn and Pegatron, emerged as the second-largest district by merchandise exports at $26.4 billion. Gujarat and Maharashtra continued to be among the top exporters, but Gujarat's exports declined by 5% YoY, while Maharashtra saw a subdued growth of 6.4%.
The performance of Tamil Nadu and other states highlights the diversification of India's export landscape. While Gujarat, a major petroleum and gems exporter, saw a decline in its share of total merchandise exports from 30.7% in FY22 to 25.6% in FY26, Tamil Nadu's share increased from 8.5% to 13.7% over the same period.
Future Outlook
Analysts expect Tamil Nadu's export growth to continue, driven by its diverse export profile and the government's initiatives to promote electronics manufacturing. As India aims to increase its merchandise exports, states like Tamil Nadu are likely to play a crucial role in achieving this goal.
