India’s export landscape in 2026 presents unprecedented opportunities for entrepreneurs and established businesses alike. With engineering goods exports reaching $116 billion (26.88% of total exports) and the United States remaining India’s top export destination at $86.51 billion, the time has never been better to explore what to export from India.
This comprehensive guide reveals the best products to export from India along with realistic profit margins, investment requirements, target markets, and actionable strategies to help you identify the most profitable export products India offers in 2025.
Why India’s Export Sector is Booming in 2026
India has transformed from a traditional exporter of raw materials to a sophisticated supplier of high-value products across multiple sectors. India’s merchandise exports reached $437.42 billion during fiscal year 2024-25, with engineering goods, pharmaceuticals, electronics, and agriculture collectively accounting for over 50% of total exports.
Several factors fuel this growth:
Government Support: The Production-Linked Incentive (PLI) scheme, RoDTEP (Remission of Duties and Taxes on Exported Products), and duty drawback schemes significantly boost exporter profitability. As of March 31, 2025, over ₹57,976 crore ($6.78 billion) had been disbursed under government export incentive schemes.
Infrastructure Development: Dedicated freight corridors, port modernization through Sagarmala initiative, and PM Gati Shakti’s multimodal connectivity have reduced logistics costs and improved delivery timelines dramatically.
Digital Transformation: B2B platforms, virtual trade shows, and e-commerce integration allow even small-scale exporters to reach global buyers without massive marketing budgets.
India’s Competitive Edge: The combination of skilled labor, competitive manufacturing costs, and quality production gives Indian exporters advantages across multiple product categories.
Understanding Export Profit Margins: The Reality Check
Before diving into specific products, let’s understand how export profitability works. Export profit margins typically range from 10% to 30% in India, varying by sector such as textiles, electronics, and pharmaceuticals.
Factors Affecting Your Profit Margins:
Production Costs: Raw materials, labor, and manufacturing expenses form your base cost. Products with locally available raw materials like spices, textiles, and handicrafts have better margins.
Logistics and Shipping: Freight costs, customs duties, and insurance can eat 15-25% of your product value. Lightweight, high-value items naturally command better margins.
Currency Fluctuations: Exchange rate movements can significantly impact profitability. Dollar-based exports provide stability during rupee depreciation.
Market Competition: Niche products with less competition allow premium pricing, while commoditized items face pricing pressure.
Value Addition: Incorporating value-added services such as branding, premium packaging, and certifications can increase profit margins by enabling exporters to command higher prices.
Top 20 Best Products to Export from India in 2025
1. Pharmaceuticals and Generic Medicines
India is one of the largest suppliers of generic medicines and vaccines globally, earning the country the title “Pharmacy of the World.”
Export Value: $25-30 billion annually
Profit Margin: 20-35%
Target Markets: USA, UK, Germany, Brazil, South Africa
Investment Required: ₹25-50 lakhs (for trading); ₹5-10 crores (for manufacturing)
Why It’s Profitable: India produces over 60% of global generic medicines. Drugs and pharmaceuticals saw a 21.46% growth, reaching $2.59 billion from $2.13 billion in recent export data.
Product Categories: Generic tablets, antibiotic formulations, ayurvedic medicines, active pharmaceutical ingredients (APIs), herbal supplements.
Success Strategy: Focus on formulations for lifestyle diseases (diabetes, hypertension, cardiovascular conditions). Obtain WHO-GMP certification and US FDA approvals to access premium markets with higher margins.
2. Textiles and Apparel
India’s textile heritage combined with modern manufacturing makes this sector evergreen. India’s textile exports reached $44 billion in 2023, with export-focused plants earning 10-15% more per product than domestic-only units.
Export Value: $44-50 billion annually
Profit Margin:
- Cotton textiles: 10-15%
- Technical textiles: 20-30%
- Designer wear: 30-40%
Target Markets: USA, UK, UAE, Germany, Japan
Investment Required: ₹10-25 lakhs (small scale); ₹1-5 crores (medium scale)
Why It’s Profitable: The Indian textile industry accounts for about 7% of industry output, 2% of India’s GDP, and 15% of the country’s export earnings.
Product Categories: Cotton fabrics, denim jeans, ethnic wear, home textiles (bed linens, curtains), technical textiles (medical fabrics, geotextiles), sustainable organic cotton products.
Success Strategy: Focus on sectors with less competition like technical textiles which command margins beyond 15%, sometimes north of 20% for niche products. Export markets pay premium prices for quality and innovation.
3. Gems and Jewelry
India’s jewelry craftsmanship attracts global luxury buyers. Gems and jewellery exports grew 15.95%, reaching $3 billion from $2.59 billion.
Export Value: $35-40 billion annually
Profit Margin:
- Gold jewelry: 8-12%
- Diamond jewelry: 15-25%
- Lab-grown diamonds: 35-45%
- Silver jewelry: 20-30%
Target Markets: USA, UAE, Hong Kong, UK, Singapore
Investment Required: ₹50 lakhs – ₹5 crores
Why It’s Profitable: Lab-grown diamonds show margin potential of ₹12–18 lakh per kg polished stones (FOB), with US imports growing by 40% in 2024. Surat processes 90% of the world’s diamonds with advanced technology and skilled labor.
Product Categories: Gold and diamond jewelry, lab-grown diamonds, silver jewelry, gemstone jewelry, kundan and meenakari work, contemporary fusion designs.
Success Strategy: Use eco-friendly branding to appeal to Gen Z luxury buyers. Lab-grown diamonds are particularly profitable with lower production costs and growing ethical consumer demand.
4. Organic and Processed Foods
India’s food exports capitalize on organic farming and diverse agricultural produce. Government initiatives like 100% FDI and profit exemption for the first 5 years of food processing plants help new exporters get started.
Export Value: $15-20 billion annually
Profit Margin:
- Spices: 25-40%
- Organic products: 50-100% (premium over non-organic)
- Processed foods: 20-35%
Target Markets: USA, UAE, UK, Germany, Australia
Investment Required: ₹5-15 lakhs (small scale); ₹50 lakhs – ₹2 crores (processing unit)
Why It’s Profitable: India accounts for over 70% of global spice production. India’s spice exports reached $4.45 billion in 2025, with key markets in China, USA, UAE, Bangladesh, and Thailand.
Product Categories:
Spices: Turmeric, cumin, cardamom, black pepper exported primarily to Saudi Arabia, Iran, UAE, USA, UK. Basmati rice fetches 2-3x higher prices abroad with long grain aromatic quality and high international demand.
Organic Products: Millet-based snacks, herbal teas, jaggery, organic honey, turmeric powder, organic grains.
Processed Foods: Pickles, papad, ready-to-eat curries, chutneys, snacks.
Success Strategy: Certified organic farms can fetch 50%-100% higher prices than non-organic products. Focus on FSSAI and organic certifications to access premium markets.
5. Handicrafts and Home Décor
Indian handicrafts showcase cultural heritage with growing global demand for sustainable, handmade products. The handicraft sector hosts 744 clusters with 212,000 artisans producing over 35,000 products, expected to grow from $4,277.5 million in 2023 to $7,817.8 million by 2032.
Export Value: $4-5 billion annually
Profit Margin: 40-60%
Target Markets: USA, UK, Germany, France, Australia
Investment Required: ₹2-10 lakhs
Why It’s Profitable: The demand for eco-friendly, handmade decor items is on the rise, with woodwork, pottery, and metalware in great demand. Perfect for home-based businesses with low investment requirements.
Product Categories: Wooden handicrafts, brass and metalware, pottery and ceramics, handloom textiles, jute products, bamboo crafts, traditional paintings, marble inlay work.
Success Strategy: Source directly from artisan clusters to maintain authenticity. Build storytelling around craftsmanship and sustainability. E-commerce platforms like Etsy provide direct access to international retail customers.
6. Engineering Goods and Auto Parts
Engineering goods were the top exported commodity with exports worth $116 billion, accounting for 26.88% of India’s total exports.
Export Value: $110-120 billion annually
Profit Margin: 12-25%
Target Markets: USA, UAE, China, Germany, UK
Investment Required: ₹50 lakhs – ₹10 crores
Why It’s Profitable: Engineering goods showed 7.44% growth with exports of $9.42 billion from $8.77 billion. Strong global demand for automotive components and machinery.
Product Categories: Auto components, industrial machinery, electrical equipment, iron and steel products, pumps and compressors, machine tools.
Success Strategy: EV market in Africa & Southeast Asia expected to grow 300% by 2026. Focus on electric vehicle components and renewable energy equipment for future growth.
7. Electronics and Electronic Goods
India’s electronics sector has witnessed explosive growth. Electronic goods exports jumped 78.97%, reaching $4.11 billion from $2.29 billion.
Export Value: $20-25 billion annually
Profit Margin: 15-25%
Target Markets: USA, UAE, UK, Netherlands, Singapore
Investment Required: ₹25 lakhs – ₹5 crores
Why It’s Profitable: Electronics exports grew by 32.46% in 2024-25. Government PLI scheme support for electronics manufacturing.
Product Categories: Mobile phones and accessories, LED lights and components, consumer electronics, electronic components, IT hardware, wearable devices.
Success Strategy: Apple’s iPhone exports from India demonstrate the sector’s potential. Focus on becoming part of global supply chains for electronics giants.
8. Leather and Leather Goods
India’s leather industry combines traditional craftsmanship with modern design.
Export Value: $4-5 billion annually
Profit Margin: 18-30%
Target Markets: USA, UK, Germany, Italy, France
Investment Required: ₹15-40 lakhs
Why It’s Profitable: The footwear sector accounts for maximum India’s exports with sales totaling $1,152.27 million during April-June 2024-25.
Product Categories: Leather footwear, handbags and accessories, leather garments, wallets and belts, leather upholstery.
Success Strategy: Focus on vegetable-tanned and eco-friendly leather products to meet growing sustainability demands in European markets.
9. Agricultural Products
India’s diverse agro-climatic zones produce high-quality agricultural commodities.
Export Value: $50-55 billion annually
Profit Margin:
- Basmati rice: 25-35%
- Fresh fruits: 20-30%
- Spices: 30-40%
Target Markets: Middle East, USA, Europe, Southeast Asia
Investment Required: ₹10-30 lakhs
Why It’s Profitable: Rice exports grew 44.61%, reaching $1.37 billion from $0.95 billion.
Product Categories:
Basmati Rice: Exported to Saudi Arabia, Iran, UAE with profit margins of ₹15-20 per kg versus ₹8-10 locally.
Mangoes: Premium quality Indian mangoes exported to Iran, UAE, Iraq, Oman, Saudi Arabia with profit margins of ₹10-15 per kg versus ₹5 locally.
Bananas: India is world’s largest banana producer, exporting varieties like Grand Naine to UAE, Netherlands, Russia, Bahrain, Sri Lanka.
Pomegranates: Rich color and juice content with year-round demand in UAE, Netherlands, Russia, Bahrain.
Onions: Exported to Bangladesh, Malaysia, Sri Lanka, UAE, Nepal with ₹3-6 per kg extra margins.
Success Strategy: Higher profit margins compared to local markets, stable demand in international markets, government incentives like duty drawback and MEIS.
10. Petroleum Products
Petroleum products contributed $60.07 billion or 13.86% of India’s total exports.
Export Value: $60-65 billion annually
Profit Margin: 5-12%
Target Markets: UAE, Singapore, China, Nepal, Myanmar
Investment Required: ₹10-50 crores (capital intensive)
Why It’s Profitable: Consistent demand from neighboring countries and refined petroleum products fetch good margins despite capital intensity.
Product Categories: Refined petroleum, naphtha, liquefied petroleum gas (LPG), diesel, aviation fuel.
11. Chemicals and Petrochemicals
Export Value: $25-30 billion annually
Profit Margin: 15-25%
Target Markets: China, USA, Brazil, Germany, Indonesia
Investment Required: ₹50 lakhs – ₹10 crores
Product Categories: Organic chemicals, dyes and pigments, specialty chemicals, agrochemicals, cosmetic chemicals.
12. Tea and Coffee
Indian teas, especially Darjeeling, are considered luxury items with exporters earning from packaged or branded forms for better profits.
Export Value: $800 million – $1.2 billion annually
Profit Margin: 25-40%
Target Markets: Russia, UAE, USA, UK, Iran
Investment Required: ₹5-20 lakhs
Product Categories: Darjeeling tea, Assam tea, Nilgiri tea, masala chai blends, Arabica and Robusta coffee.
13. Fresh Flowers and Plants
Decorative and ritual flowers exported to USA, Germany, UAE, Australia, South Korea can fetch 5x profits overseas with proper cold-chain.
Export Value: $150-200 million annually
Profit Margin: 40-60%
Target Markets: Netherlands, USA, Germany, UK, UAE
Investment Required: ₹10-25 lakhs
Product Categories: Roses, orchids, marigolds, foliage plants, dried flowers.
14. Ayurvedic and Herbal Products
Huge demand for Ayurvedic and herbal medicines exported to USA, Germany, UAE, Australia, South Korea, with processed forms like extracts and powders fetching even higher value.
Export Value: $500 million – $800 million annually
Profit Margin: 35-50%
Target Markets: USA, Germany, Netherlands, UAE, Australia
Investment Required: ₹15-40 lakhs
Product Categories: Ayurvedic medicines, herbal supplements, medicinal plant extracts, herbal cosmetics, wellness products.
15. Plastic and Rubber Products
Export Value: $10-12 billion annually
Profit Margin: 12-20%
Target Markets: USA, China, UAE, Germany, UK
Investment Required: ₹20-60 lakhs
Product Categories: Plastic packaging materials, polymer products, rubber tires, industrial rubber components.
16. Furniture and Wooden Products
Export Value: $2-3 billion annually
Profit Margin: 25-35%
Target Markets: USA, UK, Germany, UAE, Australia
Investment Required: ₹15-40 lakhs
Product Categories: Wooden furniture, modular furniture, bamboo furniture, antique reproductions.
17. Sports Goods and Equipment
Export Value: $400-500 million annually
Profit Margin: 20-30%
Target Markets: USA, UK, Germany, Australia, UAE
Investment Required: ₹10-30 lakhs
Product Categories: Cricket equipment, yoga accessories, fitness equipment, sports apparel, outdoor gear.
18. Ceramic and Glassware
Export Value: $1.5-2 billion annually
Profit Margin: 18-28%
Target Markets: USA, UAE, UK, Germany, Saudi Arabia
Investment Required: ₹20-50 lakhs
Product Categories: Ceramic tiles, tableware, decorative glassware, sanitary ware.
19. Marine Products
Export Value: $7-8 billion annually
Profit Margin: 15-25%
Target Markets: USA, China, Japan, Vietnam, Thailand
Investment Required: ₹30 lakhs – ₹2 crores
Product Categories: Frozen shrimp, fish, crab, lobster, squid.
20. Organic and Specialty Chemicals
Export Value: $18-22 billion annually
Profit Margin: 20-30%
Target Markets: China, USA, Germany, Belgium, Japan
Investment Required: ₹1-5 crores
Product Categories: Fine chemicals, specialty polymers, pharmaceutical intermediates.
How to Select the Right Export Product for Your Business
Choosing the best products to export from India requires strategic analysis beyond profit margins.
Market Research Framework
Demand Analysis: Use platforms like APEDA, DGFT, and Export Promotion Councils to identify products with growing international demand. Study import statistics of your target countries.
Competition Assessment: Evaluate how many Indian exporters operate in your chosen product category. Choose items with low domestic competition but high overseas demand—like Khadi garments in the US or herbal cosmetics in the UAE.
Supply Chain Evaluation: Ensure reliable local sourcing. Products with readily available raw materials in India maintain better margins and supply consistency.
Regulatory Compliance: Research certification requirements. Some products need FSSAI, APEDA, organic certifications, or quality standards specific to target markets.
Logistics Feasibility: Consider product shelf life, shipping requirements, and cold chain needs. Perishable goods require sophisticated logistics infrastructure.
Investment and Margin Calculation
Calculate total landed cost including:
- Production/procurement cost
- Packaging and labeling
- Export documentation
- Freight and insurance
- Import duties in destination country
- Marketing and buyer acquisition
Export profit margins typically range from 10% to 30%, with key costs including production, logistics, duties, taxes, and currency fluctuations.
Target Market Selection
Exporting to developed countries can bring better margins but needs higher compliance, while nearby countries like Nepal, Bhutan, UAE, and Sri Lanka offer quicker scaling.
High-Value Markets: USA, UK, Germany, Australia pay premium prices but require strict certifications and quality standards.
Volume Markets: Middle East, Africa, Southeast Asia offer large volumes with moderate pricing.
Niche Markets: Japan, Scandinavia, Switzerland seek specific qualities and pay super-premium prices.
Step-by-Step Process to Start Exporting
Step 1: Business Registration and Documentation
- Register your business entity (Sole Proprietorship, LLP, or Private Limited)
- Obtain IEC (Import Export Code) from DGFT
- Complete GST registration
- Open current account with authorized dealer bank
- Get product-specific certifications (FSSAI for food, APEDA for agriculture, etc.)
Step 2: Product Sourcing and Quality Assurance
- Identify reliable manufacturers or suppliers
- Establish quality control protocols
- Negotiate pricing and payment terms
- Create product samples for buyer presentations
- Develop competitive pricing strategy
Step 3: Finding International Buyers
B2B Platforms: Register on IndiaMART, TradeIndia, Alibaba, Made-in-India portal, Global Trade Helpdesk.
Trade Fairs: Participate in India International Trade Fair (IITF), virtual trade shows, sector-specific exhibitions.
Export Promotion Councils: Connect with councils relevant to your product for buyer leads and market intelligence.
Direct Outreach: Use LinkedIn for B2B networking, contact import associations in target countries, reach out to Indian embassies’ commercial wings.
Step 4: Documentation and Shipping
Essential export documents:
- Commercial Invoice
- Packing List
- Shipping Bill
- Bill of Lading / Airway Bill
- Certificate of Origin
- Export Declaration Form
- Product-specific certificates
Partner with reliable freight forwarders and customs clearance agents to handle logistics professionally.
Step 5: Payment and Finance
Secure payment methods:
- Letter of Credit (safest for new buyers)
- Advance Payment (30-50% upfront)
- Documents Against Payment (D/P)
- Documents Against Acceptance (D/A)
- Open Account (for established relationships)
Consider export credit insurance to mitigate payment risks.
Maximizing Your Export Profitability
Leverage Government Schemes
RoDTEP: Refunds embedded taxes not covered under GST, improving profit margins.
Duty Drawback: Claim refunds on customs duties paid on imported inputs used in exported products.
EPCG Scheme: Import capital goods duty-free for producing export products.
Interest Subvention: Access pre-shipment and post-shipment credit at subsidized rates.
Value Addition Strategies
Incorporating value-added services such as branding, premium packaging, and certifications can increase profit margins by enabling exporters to command higher prices.
- Develop private labels for retail markets
- Invest in attractive packaging design
- Obtain organic, fair trade, or sustainability certifications
- Create product variations for different market segments
- Build brand identity for premium positioning
Operational Efficiency
- Negotiate bulk raw material purchases for better pricing
- Optimize packaging to reduce shipping costs
- Use digital tools for documentation and compliance
- Build relationships with multiple logistics providers
- Maintain buffer inventory for quick order fulfillment
Common Challenges and Solutions
Challenge 1: Finding Reliable Buyers
Solution: Start with smaller trial orders. Use Letters of Credit for payment security. Build reputation through consistent quality and delivery. Request testimonials and referrals from satisfied buyers.
Challenge 2: Managing Quality Consistency
Solution: Implement quality control systems. Conduct pre-shipment inspections. Work with certified suppliers. Maintain quality documentation for traceability.
Challenge 3: Currency Risk
Solution: Use forward contracts to lock exchange rates. Price products in USD or EUR for stability. Factor currency fluctuation buffer in pricing.
Challenge 4: Competition from Other Countries
Solution: Focus on India’s unique advantages – traditional craftsmanship, organic products, specific varieties. Compete on quality and reliability rather than just price. Build long-term buyer relationships.
Challenge 5: Regulatory Compliance
Solution: Invest in learning export regulations. Hire experienced customs clearance agents. Join Export Promotion Councils for guidance. Use government portals for updated information.
Product-Wise Investment and Margin Summary Table
| Product Category | Investment Required | Profit Margin | Export Value (Annual) |
|---|---|---|---|
| Pharmaceuticals | ₹25L – ₹10Cr | 20-35% | $25-30B |
| Textiles | ₹10L – ₹5Cr | 10-40% | $44-50B |
| Gems & Jewelry | ₹50L – ₹5Cr | 8-45% | $35-40B |
| Organic Foods | ₹5L – ₹2Cr | 25-100% | $15-20B |
| Handicrafts | ₹2L – ₹10L | 40-60% | $4-5B |
| Engineering Goods | ₹50L – ₹10Cr | 12-25% | $110-120B |
| Electronics | ₹25L – ₹5Cr | 15-25% | $20-25B |
| Leather Products | ₹15L – ₹40L | 18-30% | $4-5B |
| Agricultural Products | ₹10L – ₹30L | 20-40% | $50-55B |
| Petroleum Products | ₹10Cr – ₹50Cr | 5-12% | $60-65B |
Future Trends: What to Export from India in Coming Years
Sustainable and Eco-Friendly Products
Global consumers increasingly demand sustainable alternatives. Organic textiles, biodegradable packaging, bamboo products, and eco-friendly handicrafts will command premium prices.
Health and Wellness Products
Post-pandemic health consciousness drives demand for Ayurvedic supplements, organic foods, yoga equipment, and natural personal care products.
Technical Textiles
Technical textiles used in healthcare, automotive, or sports sectors have margins going beyond 15%, sometimes north of 20% for niche products. This sector offers massive growth potential.
Electronics and EV Components
EV market in Africa & Southeast Asia expected to grow 300% by 2026. Electronics manufacturing under PLI scheme positions India as global electronics hub.
Lab-Grown Diamonds
US imports of lab-grown diamonds grew by 40% in 2024, offering sustainable luxury at high margins.
Success Tips for Export Entrepreneurs
Start Small, Scale Smart: Begin with trial shipments to test markets and build experience. Even small-scale exporters can earn profits within 6-12 months with proper planning.
Focus on Quality: International buyers value consistency over everything. Never compromise quality for cost savings. One quality issue can destroy years of relationship building.
Build Strong Relationships: Export success depends on trust. Communicate promptly, deliver on commitments, maintain professional documentation.
Stay Informed: Subscribe to trade publications, join industry associations, attend webinars. Export regulations and market trends change frequently.
Use Technology: Leverage digital tools for market research, buyer communication, documentation, and logistics tracking. Modern exporters operate efficiently through digital platforms.
Network Actively: Connect with other exporters, freight forwarders, trade consultants. The export community is surprisingly collaborative – experienced exporters often guide newcomers.
Plan Finances Carefully: Export payments can take 30-90 days. Maintain adequate working capital. Use export credit facilities offered by banks.
Conclusion
The best products to export from India in 2025 span diverse categories from traditional handicrafts to high-tech electronics. Your success depends not just on choosing profitable export products India offers, but on execution excellence – quality consistency, reliable delivery, proper documentation, and building buyer trust.
Margins range from 8% to 40% depending on the product, country, and trade model, with handicrafts, processed foods, organic goods, and digital services tending to offer high margins.
India’s competitive advantages – skilled workforce, diverse production capabilities, government support schemes, and improving infrastructure – create unprecedented opportunities for exporters willing to invest time in learning the business.
Whether you’re starting with ₹5 lakhs in handicrafts or ₹5 crores in engineering goods, the global marketplace awaits Indian products. Choose products aligned with your expertise, target markets hungry for what India offers, maintain uncompromising quality standards, and build your export empire one shipment at a time.
The world is your customer. India’s products are your offering. Your entrepreneurial journey into international trade starts today.