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India’s Electronics Exports Soar 47% in Q1 FY26 — US, UAE & China Lead the Surge

India’s electronics export sector is on a steep upward trajectory. According to the Commerce Ministry, exports surged 47% year-on-year in the April–June quarter of FY26, touching ₹1,07,123 crore (US$ 12.41 billion). This remarkable growth underscores India’s strengthening position in global supply chains, particularly as an emerging alternative manufacturing hub in Asia.

The United States, UAE, and China topped the list of export destinations, with the Netherlands and Germany rounding out the top five—showcasing a geographically diverse and expanding global footprint.

Union Minister Ashwini Vaishnaw highlighted that India’s electronics exports have crossed ₹3.45 lakh crore (US$ 40 billion)—an eightfold increase over the last decade. Domestic electronics production, too, has grown six times during the same period.

Key Highlights:

  • 47% growth in electronics exports in Q1 FY26 (â‚ą1.07 lakh crore / US$ 12.41 billion).
  • Top export markets:
  • 🇺🇸 US – 60.17% share
  • 🇦🇪 UAE – 8.09%
  • 🇨🇳 China – 3.88%
  • 🇳🇱 Netherlands – 2.68%
  • 🇩🇪 Germany – 2.09%
  • Total electronics exports: â‚ą3.45 lakh crore (US$ 40 billion), 8x growth in 11 years
  • India is emerging as a trusted global electronics manufacturing base

Garments & Marine Sectors Also See Export Gains

India’s export momentum isn’t limited to electronics. The ready-made garments (RMG) sector clocked in at ₹36,168 crore (US$ 4.19 billion) in Q1 FY26—a 9% increase from the previous year. The Tiruppur knitwear hub alone saw 11.7% growth in exports.
Meanwhile, marine exports rose by 19.45%, totaling â‚ą16,832 crore (US$ 1.95 billion), with the US again leading demand.

Other Key Takeaways:

  • RMG exports in Q1 FY26: â‚ą36,168 crore (US$ 4.19 billion)
  • FY25 RMG exports up 10.03% to â‚ą1.38 lakh crore (US$ 15.99 billion)
  • Top RMG markets:
  • US – 34.11%
  • UK – 8.81%
  • UAE – 7.85%
  • Germany – 5.51%
  • Spain – 5.29%
  • Marine export growth: 19.45% in Q1 FY26
  • Top buyers: US (37.63%), China, Vietnam, Japan, Belgium
  • Growth supported by cold chain logistics, product diversification, and global quality compliance

The Big Picture

India’s diversified export performance signals a resilient and competitive manufacturing ecosystem. The recurring appearance of the US as the top buyer across multiple sectors reinforces its pivotal role in India’s trade growth story.
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India’s Car Exports Soar 22% in Q1 FY26 – Led by Maruti, Two-Wheelers & Global Demand

India’s automobile exports hit the accelerator in Q1 FY2025-26, clocking a 22% year-on-year surge across all vehicle categories. The growth was fueled by record passenger vehicle (PV) shipments and strong performances in two-wheeler and commercial vehicle segments.

According to the Society of Indian Automobile Manufacturers (SIAM), India exported 14.57 lakh vehicles in April–June 2025, up from 11.93 lakh units in Q1 last year.

Key Highlights:

  • Total Vehicle Exports:
  • 14,57,461 units in Q1 FY26 – up 22% from 11,92,566 units in Q1 FY25.
  • Passenger Vehicle Exports (Record High):
  • Hit an all-time high of 2,04,330 units (↑13%).
  • Two-Wheeler Exports:
  • Rose 23% to 11,36,942 units, up from 9,23,148 units.
  • Commercial Vehicle Exports:
  • Grew 23% to 19,427 units.
  • Three-Wheeler Exports:
  • Jumped 34% to 95,796 units.

Global Markets Driving Growth

  • Middle East & Latin America: Stable demand continued.
  • Rebound in Neighbouring Markets: Sri Lanka and Nepal bounced back.
  • New Opportunities: Japan showing rising demand.
  • FTAs in Action: Shipments under FTAs with Australia and others boosted volumes.

Maruti Suzuki Takes the Lead

  • Maruti’s Q1 Exports:
  • A massive 96,181 units shipped (↑37% YoY), capturing 47% of the PV export market.
  • “Our share in exports reached a historic high of over 47%,” said Rahul Bharti, Sr. Executive Officer at Maruti Suzuki.
  • Rest of the Industry:
  • Passenger vehicle exports from other manufacturers dipped by 2%.
  • Hyundai India:
  • Exported 48,140 units, up 13% from 42,600 last year.

Summary

India’s auto industry is revving up on the global stage with consistent export growth. Backed by market rebounds, strategic trade pacts, and strong performances by major OEMs like Maruti Suzuki and Hyundai, the Q1 numbers paint a promising picture for the rest of FY26.
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India’s Industrial & Warehousing Demand Hits Record High in H1 2025

India’s industrial and warehousing sector witnessed unprecedented growth in the first half of 2025, with leasing activity touching 20 million sq ft — a 33% year-on-year increase, according to a new report by Colliers India.

The surge is being driven by strong demand across sectors like Third-Party Logistics (3PL), e-commerce, automobiles, and engineering, particularly in top metro cities.

Key Highlights:

  • Record-breaking demand:
  • H1 2025 witnessed 20 million sq ft of industrial and warehousing leasing across India’s top 8 cities — a 33% increase YoY.
  • Delhi-NCR & Chennai lead the pack:
  • Together, these two cities contributed nearly 50% of total leasing activity.
  • Top-performing cities:
  • Delhi-NCR
  • Chennai
  • Mumbai
  • Bengaluru
(Each recorded over 2 million sq ft of demand)
  • 3PL dominance:
  • Third-party logistics players contributed to 32% of total leasing, continuing to be the sector's growth engine.
  • Sector-wise traction:
  • 3PL: ~6.5 mn sq ft
  • Engineering, e-commerce, and automobile: Each contributed 2–4 mn sq ft
  • Retail sector also showed significant interest
  • Micro-market hotspots:
  • Bhiwandi (Mumbai): 3.1 mn sq ft
  • Oragadam (Chennai): 1.5 mn sq ft
  • Retail sector also showed significant interest
  • Q2 2025 – The strongest yet:
The second quarter alone saw 11 million sq ft of leasing — the highest quarterly absorption in recent years, marking a 52% YoY growth.
“While 3PL players continue to lead, engineering, e-commerce, and automobile segments are steadily gaining share in Grade A warehousing demand,” — Vimal Nadar, National Director & Head of Research, Colliers India
“The growth trajectory looks solid. We expect robust performance in the upcoming quarters of 2025,” — Vijay Ganesh, MD, Industrial & Logistics Services, Colliers India
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Vadhavan Port to Link 24 Maharashtra Districts via Samruddhi Mahamarg: A Maritime Game-Changer

Maharashtra Chief Minister Devendra Fadnavis announced that the upcoming Vadhavan Port will revolutionize the state’s logistics and trade ecosystem by directly connecting 24 districts through the Samruddhi Mahamarg expressway.
The announcement was made during the inaugural session of the Maharashtra Maritime Summit 2025 in Mumbai, which brought together top policymakers, industry leaders, diplomats, and global maritime experts.
“The Vadhavan Port will be a game-changer — not just for coastal trade, but for inland logistics connectivity. With seamless road access and an offshore airport, this will unlock new economic corridors for Maharashtra,” said CM Fadnavis.

Key Highlights from the Summit:

  • Direct connectivity: Vadhavan Port to link 24 districts via Samruddhi Mahamarg and feeder roads.
  • Multimodal future: Offshore airport planned to boost cargo movement efficiency.
  • Skill-focused development: Youth skill-building programs to prepare workforce for port-led jobs.irport planned to boost cargo movement efficiency.
  • Policy push: Formation of a Maritime Acceleration Task Force to speed up implementation of port infrastructure projects.
  • Industry participation: Thought leaders from Adani Ports, JSW Infra, DP World, Damen Shipyards, Candela, and others discussed:
  • Attracting global shipbuilding and ship-breaking partnerships.
  • Expanding India's maritime manufacturing capacity.
  • Tapping waterway transport to decongest highways.
  • Diplomatic presence: Multiple foreign diplomats showed interest in maritime partnerships with Maharashtra.
Minister for Ports and Fisheries, Nitesh Rane, emphasized the importance of public-private collaboration and announced a forward-looking Maritime Roadmap focused on innovation, job creation, and sustainable port development.
“We must look beyond traditional shipping — Maharashtra can become the next global hub for shipbuilding, inland waterway transport, and blue economy opportunities,” Rane stated.
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India’s Green Warehousing Footprint Set to Quadruple by 2030: JLL India

India’s warehousing sector is undergoing a green revolution, with sustainable infrastructure emerging as a core pillar of growth. According to a recent JLL India study, certified green warehouse stock is projected to quadruple to 270 million sq. ft. by 2030, up from 65 million sq. ft. in 2024—a staggering shift driven by institutional investors and the push for ESG-compliant supply chains.

Key Highlights:

  • Green-certified warehousing stock to jump from 65M sq. ft (2024) to 270M sq. ft by 2030.
  • Grade A warehousing expanded 2.5x in five years: from 88M sq. ft in 2019 to 238M sq. ft in 2024.
  • Institutional warehousing surged from 28M to 90M sq. ft, showing strong investor confidence.
  • About 72% of institutional Grade A stock is already green-certified or in progress.
  • Over 45% of institutional investor portfolios are certified green; 20% more are pre-certified or under certification.
  • Corporate occupiers are aligning warehouse sourcing with net-zero targets:
  • Energy savings of 30–40%
  • Water conservation
  • Waste recycling
  • Use of eco-friendly materials
  • By 2030, India’s warehousing market could hit 885M sq. ft, with institutional supply making up 260M sq. ft—80% of which will be green-compliant.
  • Retrofitting and diverse funding models are essential to scale the green transition.

Why It Matters:

The shift reflects not just demand for modern logistics infrastructure, but a deeper integration of sustainability in supply chain strategy, influenced by global ESG mandates, e-commerce growth, and regulatory pressure.

Bottom Line:

India is rapidly cementing its position as a global leader in sustainable warehousing, and this green momentum is set to redefine the future of logistics real estate.
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Indian Textile Sector Attracts Investment from Japan: AEPC

India’s textile sector is stitching together stronger trade ties with Japan, as major Japanese apparel brands show serious interest in sourcing from and investing in Indian manufacturing. At the recently held India Tex Trend Fair (ITTF) 2025 in Tokyo, key meetings and collaborations unfolded between Indian exporters and Japanese buyers—ushering in a new chapter for bilateral textile trade.
“We had successful meetings with major Japanese brands like Uniqlo, Daiso, and YKK. There is real potential here to scale up sourcing and joint ventures,”
— Sudhir Sekhri, Chairman, AEPC
The Apparel Export Promotion Council (AEPC) believes India has a golden opportunity to become a leading apparel supplier to Japan—leveraging its manufacturing capabilities, growing sustainability focus, and policy support like PM MITRA Parks.

Key Highlights:

  • Japan keen to invest in India’s textile sector; meetings held with top brands including:
  • Uniqlo, Adastria, Daiso, YKK, Pegasus, Toray, and more.
  • Over 30 Indian firms participated in India Tex Trend Fair 2025 in Tokyo.
  • AEPC urged Japanese companies to increase sourcing from India and explore FDI opportunities.
  • Indian companies committed to Japanese quality standards and compliance norms.
  • India's current share in Japan's apparel import market is only 1% (USD 234.5 million) of Japan’s USD 23 billion import volume.
  • India’s sustainability credentials, duty-free trade, and flexible manufacturing are key advantages.
  • To scale up exports, focus needed on:
  • Quality improvement in MMF (Man-Made Fibers).
  • Simplified trade procedures.
  • Japanese regulatory compliance.

Government Push:

The Indian government is accelerating domestic textile manufacturing through schemes like the seven PM MITRA Parks, aiming to make India a preferred sourcing hub for global markets.
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India Secures Long-Term Fertiliser Deal with Saudi Arabia Amid Global Supply Uncertainty

In a strategic move to strengthen agricultural resilience, India has signed a major five-year deal with Saudi Arabia’s Ma’aden for the supply of di-ammonium phosphate (DAP) fertilisers — a lifeline for Indian farmers grappling with rising prices and global supply constraints.
This partnership comes at a crucial time, as China continues to limit its fertiliser exports, shaking up international markets and prompting countries like India to diversify sourcing.

Key Highlights:

  • 5-Year Agreement: Ensures a steady, long-term supply of DAP and other fertilisers from Saudi Arabia’s Ma’aden to India.
  • Public Sector Involvement: Indian Potash Ltd (IPL), Coromandel International, and Paradeep Phosphates are part of the deal.
  • Supply Assurance: Although volumes aren't publicly disclosed, the agreement promises price stability and uninterrupted supply.
  • DAP Demand in India: India imports over 60% of its DAP needs, making this deal vital for reducing dependency on volatile markets
  • China’s Role: Ongoing Chinese export restrictions have triggered global price spikes, pushing India to secure alternative sources.
  • Strategic Diversification: The agreement reflects India’s broader vision to build long-term fertiliser security and reduce reliance on single-country suppliers.
  • Economic Impact: Aims to help the government cut back on fertiliser subsidies, which peaked at â‚ą2.55 lakh crore in 2022–23.
  • Food Security Focus: Strengthening agri-supply chains ensures Indian farmers get timely and affordable access to fertilisers, supporting higher crop yields and stable food production.

Why It Matters

This agreement is more than a trade deal — it’s part of India’s growing push to insulate itself from global supply shocks and ensure that agricultural inputs remain accessible, affordable, and stable. For the world’s largest democracy, with millions of farmers relying on predictable support, such partnerships are vital to long-term food and economic security.
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India’s Renewable Energy Surge: Solar Now Cheaper Than Coal, 420% Growth in June Alone

India’s clean energy revolution hit a new milestone in June 2025, with renewable energy capacity soaring 420% year-on-year, from 1.4 GW in June 2024 to 7.3 GW this year, according to Union Minister for New and Renewable Energy Mr. Pralhad Joshi. The announcement came during the IVCA Renewable Energy Summit held in Mumbai, where leaders and investors gathered to discuss India’s green energy roadmap.
Energy Summit held in Mumbai, where leaders and investors gathered to discuss India’s green energy roadmap.

Key Highlights:

  • 420% YoY growth in renewable energy capacity addition in June 2025.
  • Solar capacity up 4,000% since inception — from 2.82 GW to 117 GW.
  • Wind capacity jumps 140%, from 21 GW to 51.7 GW.
  • Solar energy + battery storage now cheaper than thermal power. .
  • Tariff dropped from â‚ą10.95/unit in 2010-11 to â‚ą2.15/unit in 2025.
  • Clean Energy FDI 2023: â‚ą42,000 crore (US$ 4.88 billion).
  • Cumulative FDI since 2020: â‚ą1.6 lakh crore (US$ 18.6 billion).
  • Q1 2025 Clean Energy Investment: â‚ą84,309 crore (US$ 9.8 billion) — 7.7x YoY jump.
  • India’s largest waste-to-energy plant in Ahmedabad processes 1,000 tonnes of waste daily into electricity.
  • 83% of 2024’s power sector investment directed toward renewables.

What This Means for Logistics & Infrastructure:

India’s shift to green energy is not just about environment—it’s reshaping the energy backbone of logistics and manufacturing. With lower tariffs, better energy storage, and massive public-private investments, supply chains can expect more stable, cleaner, and cheaper energy sources going forward.
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India Eyes $100B in US Exports: FIEO Identifies 300+ High-Potential Products

In a strategic push to expand trade with the United States, the Federation of Indian Export Organisations (FIEO) has identified over 300 high-potential export items and is calling for tariff concessions to boost India’s competitiveness in the US market.
The move comes as India navigates a shifting global trade environment and seeks to solidify its position as a major export partner to the US — already India’s largest export destination with $86.5 billion in shipments last year.

Key Highlights:

  • 408 products shortlisted by FIEO — accounting for two-thirds of India’s exports to the US.
  • Key sectors include:
  • Frozen shrimps (40% of US imports already from India)
  • Pharmaceuticals, smartphones, textiles, footwear, chemicals, carpets, electronic goods, and diamonds
  • FIEO urges tariff cuts to counter global competition, especially in labour-intensive sectors.
  • Trade talks are ongoing — led by Special Secretary Rajesh Agarwal — with a key meeting expected before August 1, ahead of proposed tariff changes under the Trump administration.
  • Potential risk: High US duties (up to 26%) on select items like carpets and shrimps could affect India's edge.
  • Geopolitical friction may influence negotiations — US pressure on India’s BRICS alignment and oil ties with Russia could complicate tariff decisions.

What to Watch:

India’s next round of negotiations will be crucial in determining how many of these export items gain easier US market access — potentially unlocking billions in additional trade.
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GCCs Set to Add $100–150 Billion to India’s GDP by 2030: FM Sitharaman

India’s Global Capability Centres (GCCs) are rapidly emerging as a major pillar of economic growth, with Finance Minister Nirmala Sitharaman projecting a massive contribution of $100–150 billion to India’s GDP by 2030.
Speaking at the CII GCC Summit, the Finance Minister spotlighted how India has become a global hub for innovation, research, and digital transformation through its thriving network of GCCs.
“India’s GCCs are no longer just back offices — they are the nerve centres of global innovation and leadership,” she said.
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