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Category: Business Trends

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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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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 ₹2.55 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 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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India’s Banana Export Push: Sea Freight, Hubs, and Global Market Access

India is peeling back the challenges in its banana export ecosystem and going full throttle with logistics reforms, new sea freight routes, and strategically placed export hubs. While it is the world’s largest banana producer, India still holds just a 1.2% share in global banana exports—a gap it now aims to close. According to APEDA, India’s banana export value surged tenfold, from USD 25 million in 2010 to USD 250.6 million in 2023. Yet, critical issues like fragmented farming, poor cold chain logistics, and reliance on expensive air freight continue to hinder its global potential.

Key Developments in Focus:

  • Export Hubs Identified: Jalgaon, Solapur (Maharashtra), and Anantapur (Andhra Pradesh) to house modern packhouses and reefer linkages for year-round exports.
  • Shift Toward Sea Freight: Pilot shipment from CISH Lucknow to the Netherlands showed positive results—an encouraging step away from costly air routes.
  • Tariff Disparities: Indian bananas face up to 26% import duty in key Western markets, compared to just 10% for Latin American competitors.
  • Push for FTAs: Report urges trade deals with the EU and U.S. to level the playing field and open high-value markets.
  • Sustainability Certifications: Emphasizing GlobalGAP and Rainforest Alliance certifications to align with consumer trends in Europe and North America.

Logistics Opportunity:

With infrastructure upgrades and modal shift to cost-efficient sea freight, India’s banana sector could see expanded access to markets in the EU, Russia, and ASEAN, improving both margins and volumes.
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Namakkal Eggs Crack the US Market: A New Era for Indian Agri Exports

In a historic leap for India’s agri-export sector, Namakkal, the “Egg Capital of India,” has begun exporting eggs to the United States, marking a transformative chapter in its logistics and global reach. With the first-ever shipment of one crore eggs to the US, Namakkal is no longer just catering to its traditional Middle Eastern markets—it’s going truly global.
Every day, Namakkal produces nearly 6 crore eggs, with about 50 lakh heading to overseas markets. The town now exports over 15 crore eggs per month to countries such as UAE, Bahrain, Maldives, Oman, and parts of Africa.

Key Highlights at a Glance:

  • First-ever export to the US: 1 crore eggs shipped in refrigerated containers.
  • Each reefer container carries 4.72 lakh eggs, valued at ~$35,000 (`30 lakh).
  • Export destinations include the Middle East, Africa — and now the USA.
  • Proximity to ports gives Namakkal an edge over Andhra Pradesh for faster transit:
  • 4 days to Middle East from Namakkal vs 14 days from Andhra.
  • Logistics advantage + disease-free farms have driven consistent exports.
  • Central subsidy for egg export transport dropped from 7% to 1% since 2014.
  • Global trade challenges:
  • Biosecurity certifications required by UAE.
  • Qatar demands ‘AA’/‘A’ grade eggs ≥ 60g — Namakkal’s average is ~55g.
  • Export expansion needs:
  • Return of FOB subsidies to compete with nations like Turkey.
  • Permanent trade agreements with egg-deficient nations.
  • Infra boost for certified grading, packing, and processing units

What This Means for India’s Export Ecosystem

Namakkal’s entry into the US market showcases how robust logistics, port connectivity, and farm-level hygiene protocols can power India’s rural economies onto the global stage. But the road ahead needs policy support, especially in subsidies, infrastructure development, and ease of certification to maintain and grow momentum.

“The opening of the US market is a big breakthrough. But long-term success will depend on government support and sustained global trade partnerships,” says local poultry farmer C. Sasikumar.

Logistics Insight:

This case underlines a broader truth — regional production hubs can become global exporters with the right mix of:
  • Export-friendly policies
  • Cold-chain logistics
  • Quick port access
  • Disease-resilient farming
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India Eyes $100 Billion Agri-Exports by 2030

Despite being among the world’s top producers of crops like rice, sugar, mangoes, and bananas, India has struggled to unlock the full potential of its agri-export market—especially in high-demand segments like premium tropical fruits and convenience foods.
Now, with a bold vision in sight, the Indian government has set an ambitious $100 billion target for agricultural exports by 2030, aiming to double its current $50 billion baseline.

What’s Driving the Push?

  • Lack of product diversification: Over-reliance on bulk staples (like rice and sugar) has stalled growth in more profitable, value-added segments.
  • Untapped potential: India leads global production of bananas (25.4%) and mangoes (44%) but contributes less than 2% to their global exports.
  • Logistics bottlenecks: High perishability, domestic pricing, and air freight dependency are limiting factors.

APEDA’s Two-Phase Export Strategy

The Agricultural and Processed Food Products Export Development Authority (APEDA), under the Ministry of Commerce, is spearheading efforts in collaboration with ICRIER to double its current $25 billion contribution.

Phase 1 Focus Areas:

  • Bananas
  • Mangoes & mango pulp
  • Potatoes

Phase 2 Expansion:

  • Oranges, grapes, and chillies
  • Okra, baby corn, groundnut
  • Dairy, honey, table eggs
  • Juices and pulps

Key Insights from ICRIER’s Report:

  • Bananas: Exports rose from $25M (2010) to $250.6M (2023), yet still only 1.2% of global exports.
  • Mangoes: Despite 44% of world production, exports are just 0.6%.
  • Potatoes: India accounts for 14.2% of production but only 2.8% in exports; the global processed potato market could grow from $29B (2021) to $47B by 2030.

Recommendations for Boosting Exports:

  • Create integrated export hubs and value chain clusters
  • Enhance cold chain infrastructure & freight reliability
  • Adopt digital tech: Blockchain for traceability, AI for quality control, and real-time logistics monitoring
  • Collaborate across agencies: APEDA, ICAR, and state bodies to conduct trial shipments and logistics pilots
  • Develop SOPs for export crops to meet international safety and packaging norms
“We must align our export practices with global benchmarks using AI, blockchain, and crop-specific standards to maximize value,” said Danda Raji Reddy of Telangana Horticultural University.
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India Expands Global Agri Export Footprint with Jamun, Litchi & Pineapple

In a strong signal of India’s rising role in global agri-trade, Union Minister of Commerce & Industry, Shri Piyush Goyal, announced that India’s agriculture and fisheries exports have now touched Rs. 4.5 lakh crore ($52.46 billion).
Speaking at the Krishi Vikram thematic session organized by the Indian Chamber of Commerce (ICC) in New Delhi, Goyal emphasized that this number could quadruple to Rs. 20 lakh crore ($233 billion) with focused efforts in food processing, branding, and packaging.

Key Highlights

  • India's export basket is diversifying:
Non-traditional agri-products like jamun, litchi, pineapple, and bottle gourd are now making it to international markets.
  • New global destinations:
  • Jamun recently exported to the UK
  • Litchi from Punjab shipped to Doha and Dubai
  • Rising market presence:
India’s agri exports are gaining ground in UAE, Saudi Arabia, and other Gulf nations.
  • Export growth potential:
With enhanced value addition, packaging, and branding, agri exports can witness a 4x growth in the coming years.
Shri Goyal’s remarks come at a time when India is looking to solidify its position as a global food supplier, particularly to high-demand markets in the Middle East and Europe. The export of traditionally local produce like jamun and litchi marks a significant shift in India’s agribusiness strategy.
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Tamil Nadu Sets $5 Billion Target to Become Global Seafood Export Hub

Tamil Nadu is casting a wide net with a bold new vision—transforming its vast 1,076-km coastline into a high-value seafood export powerhouse. The state has announced plans to scale its seafood exports to USD 5 billion, leveraging modern infrastructure, value-added processing, and global partnerships.
The announcement came during the Tamil Nadu Seafood – Business Connect event in Chennai, where Industries Minister Dr. TRB Rajaa shared the government’s ambitious roadmap. The event brought together senior officials, global importers, and domestic seafood processors in a bid to build new trade ties and strengthen the seafood ecosystem.
“This initiative goes beyond trade. It’s about unlocking the potential of the Blue Economy and positioning Tamil Nadu as a global player in the seafood value chain,” said Dr. Rajaa.
A detailed execution plan is being developed, with the state government pledging strategic investments and infrastructure upgrades to support sustainable and scalable growth.

Key Highlights:

  • $5 Billion Export Target set for the seafood sector.
  • Focus on value-added processing and supply chain modernization.
  • Leverages India’s second-longest coastline (1,076 km).
  • Global buyers and domestic processors engaged at Chennai summit.
  • Part of a broader push into the Blue Economy.
  • Government to offer infrastructure and policy support to stakeholders.
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India’s BRICS Trade Soars to $399 Billion – But Trade Deficit Widens

India’s trade with the BRICS bloc—Brazil, Russia, India, China, and South Africa—has witnessed a dramatic expansion over the past four years, clocking a total volume of US$ 399 billion in 2024. While this signals strong economic integration, it also underscores a growing trade imbalance that could shape discussions at the ongoing 17th BRICS Summit in Rio de Janeiro, Brazil.

Prime Minister Narendra Modi is attending the summit, where energy dependence and trade asymmetry are expected to be in sharp focus.

Key Highlights

  • BRICS trade grows at 20% CAGR (2020–2024), reaching $399 billion in 2024.
  • India’s imports from BRICS: $304 billion
    India’s exports to BRICS: $95 billion
  • Resulting in a $209 billion trade deficit
  • Russia-India trade surges:
  • CAGR of 81%, driven by oil and fertilizer imports
  • Fertilizer imports from Russia up 5x
  • Russia, Saudi Arabia & UAE now account for 59% of India’s oil import basket
  • China’s share in India’s imports declines
  • From 16.6% in 2020 to 13.7% in 2024
  • Indicates a slow but visible shift in sourcing strategy
  • Export trends:
  • Non-oil exports to BRICS: 8% CAGR
  • Refined oil product exports: 62% CAGR
  • Pharma exports to South Africa soar – now 45% of their pharmaceutical imports come from India
  • Other notable exports: telecom gear, auto components
  • Overall concern:
  • Trade structure remains heavily import-skewed
  • Energy security and raw material dependency dominate trade dynamics
  • Limited progress in boosting value-added exports

What It Means:

India’s growing BRICS trade reflects strong regional ties and strategic resource access. However, the widening trade gap and over-reliance on energy and raw materials pose long-term risks. As geopolitical and supply chain landscapes evolve, India must pivot toward boosting value-added exports and reducing vulnerability to resource-centric imports.
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