India’s export growth is becoming increasingly concentrated in a small number of states.
RBI data from the recently released Handbook of Statistics on Indian States shows that the country’s export basket is increasingly being consolidated, with the top 10 states accounting for more than 91 percent of total exports in 2024-25 (FY25), up sharply from 84 percent after the pandemic in FY22. This shift means that the rest of the states, comprising the other 26 states and Union territories, have collectively seen their share collapse to just 8 percent in FY25, from about 16 percent four years ago.
While the value of exports from Indian states has risen significantly—by 32 percent, climbing from $294.8 billion to $389.2 billion between FY18 and FY25—a Forbes India analysis of the data shows that there is an extreme and growing reliance on the top three states for exports. Gujarat, Maharashtra and Tamil Nadu together drive nearly three-fifths of overall exports by value.
The primary driver behind this phenomenon is the state of Gujarat. A state-wise analysis shows that Gujarat is pulling away from the pack, with its share of India’s exports leaping from 21.9 percent in the FY18-21 period to 31 percent in the subsequent FY22-25 period. This gain has cemented Gujarat’s position as India’s undisputed export leader.
A further analysis shows that nearly a third of Gujarat’s exports come from the district of Jamnagar, known for petroleum product exports. Ahmedabad and Surat account for another 10 percent each.
However, the formerly top exporting state, Maharashtra, has witnessed a significant erosion of its export share. The state’s contribution dropped sharply from 22.6 percent to 16.7 percent between the two periods, surrendering its leading spot to its neighbour, Gujarat. Among the other top exporting states, Tamil Nadu and Karnataka registered marginal gains, while Uttar Pradesh saw its share dip slightly.
The disproportionate reliance on a handful of states poses a significant challenge to national trade, especially as the sector continues to contend with the ramifications of high US tariffs in the absence of a trade agreement.
The Cabinet has recently approved an Export Promotion Mission, previously announced during the Union Budget 2025-26, with an outlay of Rs 25,060 crore. Under the Mission, priority support will be extended to labour-intensive sectors most impacted by recent US tariffs, such as textiles, gems and jewellery, leather, engineering goods and marine products. The stated intent of the Mission is to “sustain export orders, protect jobs, and support diversification into new geographies”.
Commerce and Industry Minister Piyush Goyal recently confirmed that the Mission will also feature targeted schemes specifically tailored to boost the export competitiveness of landlocked states.
First Published: Dec 16, 2025, 13:42
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