Karnataka Leads India''s Export Growth & IT Services

Bengaluru, Jun 9 (PTI) Karnataka was at the forefront of IT services, as well as export of textiles and petroleum products in the last 12 years, a senior government officer said on Tuesday.

As Prime Minister Narendra Modi completed 12 years in the office, the Department of Union Ministry of Commerce and Industries highlighted in Bengaluru the achievements made in terms of trade and business.

Briefing reporters on 'Free Trade Agreements, India's 12 Years of Progress in the Field of IT Services', Darpan Jain, Additional Secretary in the Department of Union Ministry of Commerce and Industries, said that in the last 12 years India's overall export sector recorded a Compound Annual Growth Rate (CAGR) of 5.7 per cent.

"The state of Karnataka is at the forefront of IT services exports and also has good progress in the export of textiles and petroleum products," he said.

Jain stated that the government is committed to building a developed India by 2047 by taking local products to the global level.

The official noted that India's services sector exports grew significantly by 9.3 per cent over the same period, strengthening the country's economy. He also added that this has helped to structurally offset the overall trade deficit.

The electronic goods export sector achieved the highest growth of 20.3 per cent. Its export value reached 47.96 billion US Dollars in Financial Year 2026.

Engineering goods created an all-time record by reaching 122.4 billion USD in Financial Year 2026, Jain said. He added that the pharmaceutical sector achieved a growth of 7.4 per cent and reached a value of 31.1 billion USD.

The export value of spices crossed 4.3 billion US Dollars, while coffee exports rose to 2.1 billion US Dollars with an annual growth of 15.3 per cent. Marine products exports reached Rs 73,439.91 crore.


Jain highlighted that the share of services sector exports in the overall export value has risen from 35 per cent in 2009-10 to 48 per cent by 2025-26.

Sharing details of the Free Trade Agreements (FTAs), the officer stated that the Government of India is working towards expanding the market and creating new opportunities.

"Currently, nine Free Trade Agreements have been signed with 38 countries in the last five years alone. This has added a GDP value of 56 trillion USD. Earlier, there was a 10-20 per cent duty on the export of certain products.

Through these agreements, exports in sectors such as agriculture, textiles, gems and jewellery, marine products, electronic equipment, and pharmaceuticals are now duty-free, opening up new opportunities for the country's producers besides increasing exports to new countries, he pointed out.

Jain also stated that this is also strengthening the bilateral relations with the countries India has signed FTAs.

The Additional Secretary mentioned that the implementation of digital technologies such as Trade Connect Platform, eCoO 2.0, and TIA Portal has simplified trade processes.

According to him, government incentive measures like 'Make in India' and PLI are the main reasons for the success.

Despite global challenges such as COVID, the Russia-Ukraine war, America's tax policies, and the war in West Asia, India's exports are achieving remarkable progress.

"The department has taken decisive steps towards transforming India into a global export hub to achieve Prime Minister Narendra Modi's vision of 'Viksit Bharat 2047'," he concluded.