7 High-Potential Export Sectors in India Poised for Growth in 2025
India’s export-driven industries are set to benefit from rising global demand in 2025. This article explores seven key sectors expected to see significant growth and opportunities.
PharmaceuticalsElectronicsEngineering GoodsTextilesChemicalsReal EstateNov 09, 2025
Overview of India’s Export Outlook (2025)
Merchandise exports from India increased steadily in early 2025, and have the potential to breach $1 trillion by FY26. The various initiatives from the government around the Production-Linked Incentive (PLI) schemes, new trade agreements, and investments in modernizing logistics to remain competitive in terms of exports all provide opportunities for increased exports. India’s role as a manufacturing and services hub for the common “China + 1” Strategy will facilitate diversified supply chains.
Top 7 Export-Oriented Sectors Primed for Growth in 2025
1. Pharmaceuticals and Biotech
With growth projected at 10% or higher, India is a world leader in generic and biosimilars exports, serving the USA, Europe, and Africa markets. Aging populations, increasing healthcare needs, and patent expirations are anticipated to drive global pharmaceutical demand. India’s low-cost R&D, scale of manufacture, and willingness to comply with regulations give it a significant advantage. Major players include Sun Pharma, Dr. Reddy’s, Cipla, Biocon, and Zydus Lifesciences.
2. Electronics and Electrical Goods
The electronics sector is growing rapidly at 20-25% year-on-year, with key products including mobile phones, components, and consumables. Expanding digitization, the roll-out of 5G infrastructure, and the build-up of green technology are key drivers of growth. India’s rapidly expanding local manufacturing base with PLI incentives and competitive labor/industrial costs in comparison to other locations provide a significant advantage. Major players include Samsung, Foxconn, Dixon Technologies, and Bharat Electronics Ltd.
3. Engineering Goods
The engineering goods sector is a key contributor, growing significantly at 8-10% year-on-year. Key products include machinery, auto parts, and industrial equipment. Global demand growth based on infrastructure expansion and more industrial automation is driving this sector. India’s growing diverse manufacturing base and improving quality standards give it a competitive edge. Major players include L&T, Bharat Forge, Bosch India, and Cummins India.
4. Textiles and Apparel
The textiles and apparel sector is rapidly growing at 6-7%, especially in organic and sustainable fabrics. Increasing trends towards environmentally-conscientious consumers are driving global demand. India has a large availability of basic raw materials and an extraordinary number of export processing zones, which provide a significant advantage. Key companies include Arvind Mills, Welspun India, Raymond, and Vardhman Textiles.
5. Chemical and Organic Chemicals
The chemical and organic chemicals sector is fast-growing at 8-10%, including specialty chemicals and advanced intermediates. Continued demand from global pharmaceutical and agri-chemical industries is a key driver. India supplies a workforce that competes on cost and is evolving its R&D capacity levels, providing a significant advantage. Leading companies include Aarti Industries, Tata Chemicals, and Deepak Nitrite.
6. Oil & Petroleum Products
The oil and petroleum products sector has a significant export value of nearly 54 billion dollars, with recent growth in refined fuels and petrochemical products. Energy demand from developing economies is driving global demand. India’s large refining capacity and diversification provide a comparative advantage. Industry leaders include Reliance Industries, Indian Oil Corporation, and Bharat Petroleum.
7. Agriculture & Food Products
The agriculture and food products sector is varied and increasing at around 5-7%, including cereals such as rice, spices, tea, and organic foods. Increasing global demand for specialty and organic products is a key driver. India’s diverse agriculture and increased capability of processing provide a significant advantage. Industry leaders include Adani Wilmar, Allana Group, and Gujarat Cooperative Milk Marketing Federation (Amul).
Frequently Asked Questions
What is the projected growth rate for the pharmaceuticals sector in India?
The pharmaceuticals sector in India is projected to grow at 10% or higher, driven by aging populations, increasing healthcare needs, and patent expirations.
Which sector is expected to grow the fastest in 2025?
The electronics and electrical goods sector is expected to grow the fastest at 20-25% year-on-year, driven by expanding digitization and 5G infrastructure.
What are the key drivers of growth in the engineering goods sector?
The key drivers of growth in the engineering goods sector are global demand based on infrastructure expansion and more industrial automation.
How is the textiles and apparel sector contributing to India's exports?
The textiles and apparel sector is rapidly growing at 6-7%, especially in organic and sustainable fabrics, driven by increasing trends towards environmentally-conscientious consumers.
What is the role of the chemical and organic chemicals sector in India's exports?
The chemical and organic chemicals sector is fast-growing at 8-10%, including specialty chemicals and advanced intermediates, driven by continued demand from global pharmaceutical and agri-chemical industries.
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