ASEAN and Africa Drive India’s Export Growth in FY27 as Europe and North America Share Declines

Commerce Department analysis shows rising exports to ASEAN and African markets during April–May, while Europe and the US account for a smaller share of total shipments.

India's export diversification strategy has led to stronger shipment growth in ASEAN and African markets during the first two months of FY27. According to an analysis by the Department of Commerce, the share of exports to Europe and members of the North American Free Trade Association (Nafta) declined during the April–May period.

India's export diversification efforts have resulted in ASEAN and African markets contributing significantly to export growth during April–May FY27, according to an analysis by the Department of Commerce.

The analysis stated that the combined share of exports to Europe and North American Free Trade Association (Nafta) countries, including the US, Canada and Mexico, declined from 46% during the corresponding period last year to 41% in the current financial year. The share of exports to the US fell by 3%, while exports to Europe declined by 2%.

During April–May, exports to ASEAN and Africa together increased by $7.6 billion compared with the same period last year, making a significant contribution to India's overall export expansion.

Exports to Nafta countries grew by 2.6%, while shipments to Europe increased by 4% during the period under review. In comparison, exports to ASEAN recorded a 66.9% increase. Growth across East Asian markets included North East Asia (30.7%) and South Asia (40.2%).

Exports to Latin American countries increased by 12.5%, while shipments to Oceania (Australia and New Zealand) rose by 29%.

ASEAN's share in India's exports increased from 8.24% during April–May last year to 11.84% in the corresponding period this year. Africa's share also rose from 9.77% to 12.28%.

The upward trend in exports to Asian and African markets continued in June. During April–June, exports to Tanzania increased by 146% to $2.9 billion, Singapore by 101% to $6.5 billion, Sri Lanka by 124% to $2.34 billion, and Australia by 25% to $2.6 billion.

In the first quarter, exports to China grew by 27.54% to $5.6 billion. Other markets also recorded growth, including South Africa (76% to $3.1 billion), Kenya (60% to $1.6 billion), Oman (26% to $1.3 billion), Indonesia (30% to $1.3 billion) and Japan (22% to $1.7 billion).

On the other hand, exports to the United States, India's largest export market, declined by 0.1% to $25.4 billion during the first three months of the financial year. Exports to the Netherlands, India's largest market in Europe, fell by 18.2% to $4.5 billion.

According to the report, the government intensified its export diversification strategy last year following the onset of tariff-related concerns arising from the US and other uncertainties, including increasing technical and non-tariff barriers.