The electronics manufacturing ecosystem also propelled the Kanchipuram district to become India’s second-largest merchandise exporting district
Tamil Nadu was established as India’s fastest-growing merchandise exporting state in FY26, with exports rising 13.7% year-on-year to $59.3 billion, driven by robust growth in smartphone and electronics shipments despite global trade tensions and geopolitical uncertainties.
According to data from the Ministry of Commerce, the state became India’s largest exporter of electronic goods, with electronics exports surging 36% year-on-year to $19.9 billion. Strong demand for smartphones and telecom equipment, particularly from the US, helped electronics exports reach nearly $20 billion, giving Tamil Nadu a 42% share of India’s total electronics exports during the fiscal year.
The electronics manufacturing ecosystem also propelled Kanchipuram district to become India’s second-largest merchandise exporting district, recording exports worth $26.4 billion. The district hosts major global electronics contract manufacturers, including Foxconn and Pegatron. Jamnagar retained the top position with merchandise exports valued at $36.6 billion.
Tamil Nadu also remained the country’s leading exporter of ready-made garments. However, exports in the segment slipped marginally by 2% year-on-year to $5.3 billion.
While Gujarat and Maharashtra continued to rank as India’s largest merchandise exporting states overall, Gujarat’s exports declined 5% year-on-year due to its heavy dependence on petroleum products, while Maharashtra registered a modest growth of 6.4%.
Karnataka recorded the second-highest export growth among states, with merchandise exports increasing by more than 12% to $34.4 billion. In contrast, Telangana’s merchandise exports fell sharply by 27%, declining from $19.1 billion in FY25 to $13.9 billion in FY26.
Tamil Nadu has also steadily increased its contribution to India’s merchandise exports over the past five years. Its share rose from 8.5% in FY22 to 13.7% in FY26, supported by a diversified export basket spanning electronics, engineering goods, textiles and other manufactured products.
Meanwhile, Gujarat’s share of India’s merchandise exports declined from 30.7% in FY22 to 25.6% in FY26, reflecting weaker performance in petroleum products and gems and jewellery exports. Maharashtra, after witnessing a decline in its share between FY22 and FY25, recorded a slight recovery in FY26, accounting for 16.2% of the country’s merchandise exports.
