Southern States Power India’s Export Resurgence
Context: India’s Export Growth Enters a New Phase
India’s export growth is witnessing a decisive geographical and structural shift. Southern states such as Tamil Nadu and Telangana are emerging as new export powerhouses, while traditional leaders in western India are facing sectoral and global headwinds. This transformation is not just regional—it reflects a deeper evolution in the export map of India, driven by technology, diversification, and global value chain integration.
I. How Is the Export Map of India Being Redrawn?
India’s export map is being reshaped along three major dimensions: geography, sectoral composition, and the nature of export growth.
1. Geographical Shift: Southern States Lead India’s Export Growth
The most striking trend in India’s export growth is the southward shift of export dynamism.
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Tamil Nadu has nearly doubled its exports in five years—from around USD 26 billion in FY21 to nearly USD 52 billion in FY25.
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Growth drivers include electronics manufacturing, mobile phones, electronic components, automobiles, and engineering goods.
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Telangana, anchored by Hyderabad, is rapidly expanding its export footprint through IT and software services, pharmaceuticals, and engineering exports.
In contrast, Gujarat and Maharashtra, long considered export strongholds, are experiencing stagnation or relative decline due to sector-specific vulnerabilities.
2. Sectoral Evolution: New-Age Exports vs. Traditional Industries
The transformation of India’s export strategy reflects a shift from traditional sectors to new-age industries.
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Southern States’ Advantage:
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Electronics manufacturing
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IT and software services
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High-value engineering and precision manufacturing
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Western States’ Challenges:
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Gujarat’s slowdown is linked to global volatility in petrochemicals
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Pressure on gems and jewellery, textiles, and labour-intensive sectors
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This sectoral rebalancing highlights how manufacturing exports in India are moving up the value chain.
3. Nature of Growth: Diversification and Global Value Chains
Southern states are not just exporting more—they are exporting better.
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Their export growth is broad-based, diversified, and technology-driven.
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These states are deeply integrated into Global Value Chains (GVCs) for electronics, automobiles, and digital services.
As a result, the export map of India is increasingly favouring states that combine skilled labour, industrial ecosystems, and policy stability.
II. How Can Non-Coastal States Boost India’s Export Growth?
For landlocked and non-coastal states like Uttar Pradesh, Madhya Pradesh, and Rajasthan, accelerating exports requires targeted strategies to overcome logistical constraints.
1. Build Multi-Modal Logistics Infrastructure
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Develop Inland Container Depots (ICDs) and dry ports
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Strengthen air cargo infrastructure
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Align state logistics plans with PM Gati Shakti to reduce logistics cost and turnaround time
Efficient logistics are critical for improving export competitiveness in inland India.
2. Focus on Niche, High-Value Export Sectors
Non-coastal states should prioritise low-volume, high-value exports, where transport costs matter less:
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Agro-processing & Food Exports: Organic produce, specialty cereals, processed foods
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Handicrafts & Textiles: GI-tagged and culturally distinctive products
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Services Exports: IT/ITES, education services, medical tourism, and tourism-linked exports
This approach aligns well with India’s broader export diversification strategy.
3. Develop Export-Oriented Industrial Ecosystems
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Establish Special Economic Zones (SEZs) and export parks near logistics hubs
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Offer plug-and-play infrastructure, reliable power, and single-window clearances
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Encourage MSMEs to integrate into national and global supply chains
Conclusion: A New Geography of India’s Export Growth
India’s export resurgence is no longer concentrated in a few western states. The rise of Southern states’ exports, driven by electronics, software, and advanced manufacturing, signals a structural shift in the export map of India.
For sustained and inclusive export growth, non-coastal states must invest in logistics, specialise in niche sectors, and plug into global value chains. Together, these changes can help India achieve resilient, high-quality export-led growth in the coming decade.
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The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH
