India’s merchandise exports surged to USD 437.10 billion in 2023–24, reflecting strong growth despite global economic challenges such as trade tensions and tariff disputes. According to the Ministry of Commerce and Industry, India’s total exports (including services) reached USD 778.21 billion, marking a 67% rise over the past decade.
The growth is powered by improved competitiveness, government export incentives, and deeper integration into global markets. The United States remains India’s biggest trading partner, holding nearly 18% of the export share in merchandise.
India’s Top 10 Merchandise Export Destinations in 2024
The table below shows the countries where India exported the most goods in 2023–24 and their respective share in the total exports:
| Rank | Country | Export Share (%) |
|---|---|---|
| 1 | United States (USA) | 17.90% |
| 2 | United Arab Emirates (UAE) | 8.23% |
| 3 | Netherlands | 5.16% |
| 4 | China | 3.85% |
| 5 | Singapore | 3.33% |
| 6 | United Kingdom | 3.00% |
| 7 | Saudi Arabia | 2.67% |
| 8 | Bangladesh | 2.55% |
| 9 | Germany | 2.27% |
| 10 | Italy | 2.02% |
| Top 10 Combined | 50.98% | |
| Others | 49.02% |
Why These Countries Matter
1. The US Dominates India’s Export Market
The United States alone accounted for 17.9% of India’s total merchandise exports, making it the single largest export destination. Key products include pharmaceuticals, engineering goods, textiles, and software-related electronics.
2. UAE: India’s Key Gulf Trade Partner
With 8.23%, the UAE stands as India’s second-largest export destination. Strategic proximity and strong ties in gems, jewelry, and petroleum products drive this relationship.
3. Netherlands and the EU Connection
The Netherlands, with 5.16%, acts as a gateway to the European Union, boosting Indian exports in chemical products, machinery, and agriculture.
Other EU countries like Germany (2.27%) and Italy (2.02%) also feature in the top 10, reflecting India’s steady penetration in European markets.
Regional Export Trends
North America Leads, Asia Close Behind
North America continues to be India’s top regional export destination, primarily due to the US. However, Asian partners such as China (3.85%), Singapore (3.33%), Saudi Arabia (2.67%), and Bangladesh (2.55%) also contribute significantly.
This diversification indicates a balanced export portfolio, reducing dependency on any single region.
Challenges: Tariff Barriers from the US
A major concern for India’s trade outlook is the new 50% tariff on Indian goods entering the US, enforced by the US government starting August 7, 2025. This includes a new reciprocal 25% tariff in addition to the existing one.
Impact on India’s Economy
- India’s GDP may shrink by over half a percentage point annually due to this tariff hike.
- Export growth to the US could slow, affecting industries like textiles, automobiles, and electronics.
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