Gujarat’s Export Dominance in FY25: ₹9.83 Trillion Triumph Amid Global Challenges

Gujarat has reaffirmed its position as India’s top exporting state in the fiscal year 2024–25 (FY25), with outbound shipments valued at ₹9.83 trillion ($118 billion), accounting for 26.6% of India’s total exports, according to the Federation of Indian Export Organisations (FIEO). Despite a marginal dip from FY24’s 30.7% share ($134.4 billion), Gujarat’s export performance outpaced other states by a significant margin, surpassing second-ranked Maharashtra (₹5.57 trillion) by nearly ₹4.3 trillion. Driven by Jamnagar’s petroleum and refinery sector, alongside emerging sectors like aerospace and shipbuilding, Gujarat’s success underscores its industrial prowess and strategic infrastructure. This article explores Gujarat’s export landscape, key drivers, challenges, and parallels with industrial and governance developments like Coal India’s critical minerals push, Hasdeo Arand’s coal mining controversy, Sona Comstar’s succession dispute, and Kartavya Bhavan’s inauguration.

Gujarat’s Export Performance in FY25

According to FIEO’s analysis, released on August 5, 2025, Gujarat’s ₹9.83 trillion in exports reflects resilience amid global trade headwinds, including US tariffs and geopolitical tensions. The state’s 26.6% share of India’s total exports (₹37.02 trillion) highlights its dominance, with key metrics:

• Top Export Districts: Jamnagar led with ₹3.63 trillion, driven by petroleum and refinery exports, followed by Surat (gems and jewellery) and Ahmedabad (pharmaceuticals and chemicals).

• Key Commodities: The top five export categories were:

  1. Petroleum Products: Anchored by Reliance Industries’ Jamnagar Refinery, the world’s largest grassroots refinery, contributing significantly to export volumes.

  2. Gems and Jewellery: Surat’s diamond cutting and polishing industry, exporting to the US, UAE, and Hong Kong.

  3. Organic Chemicals: Driven by Gujarat’s chemical hubs in Vapi and Ankleshwar.

  4. Pharmaceuticals: With Gujarat holding a 33% share in India’s drug manufacturing and 28% in drug exports.

  5. Engineering Goods: Including automotive components and machinery from Ahmedabad and Vadodara.

• Emerging Sectors: Aerospace and shipbuilding recorded triple-digit growth, signaling a shift toward high-value exports.

Gujarat’s top export markets include the United States, Netherlands, and United Arab Emirates, with newer markets like Australia and South Africa showing increased demand for chemicals and engineering goods. Despite a 3.1% decline in India’s overall exports in FY24, Gujarat’s FY25 performance reflects strategic diversification, supported by free-trade agreements (FTAs) with the UAE and Australia.

Factors Driving Gujarat’s Export Success

Gujarat’s export dominance is rooted in its industrial ecosystem and policy support:

• Strategic Infrastructure: The state boasts India’s highest maritime port cargo volume, with ports like Mundra and Kandla facilitating efficient logistics. Investments in special economic zones (SEZs), such as Dahej and Jamnagar, enhance export capabilities.

• Industrial Diversity: Gujarat leads in petrochemicals, pharmaceuticals, textiles, ceramics, and gems, with 91% of India’s soda ash and 66% of salt production. The Jamnagar Refinery alone processes 1.4 million barrels per day, per Reliance Industries data.

• Policy Support: The Gujarat Industrial Policy 2020 and MSME incentives bolster small-scale exporters, while GST implementation has improved data accuracy, per ASSOCHAM Gujarat. The Districts as Export Hubs Initiative promotes products like Morbi’s ceramics (₹17,000 crore in FY23).

• Global Demand: The Russia-Ukraine conflict increased demand for refined petroleum, with Gujarat contributing to a 60% rise in India’s petroleum exports in FY23, per FIEO.

• Low Unemployment: Gujarat’s 4.4% unemployment rate in 2022, the lowest in India, supports a skilled workforce for export-driven industries.

Challenges Facing Gujarat’s Export Sector

Despite its success, Gujarat faces significant challenges:

• Global Trade Headwinds: US tariffs and a strong dollar impacted exports, with a 10% dip in FY24, per X posts. Rare earth magnet restrictions affected sectors like automotive components, as seen in Sona Comstar’s 12% profit decline in Q1 FY26.

• Over-Reliance on Petroleum: Jamnagar’s dominance in petroleum exports makes Gujarat vulnerable to global oil price volatility, necessitating diversification.

• Environmental Concerns: Industrial growth, particularly in chemicals and petrochemicals, raises sustainability issues, similar to Hasdeo Arand’s deforestation backlash against Coal India’s mining.

• Regional Disparities: While Jamnagar, Surat, and Ahmedabad thrive, rural districts lag, limiting the impact of initiatives like Districts as Export Hubs.

Parallels with Industrial and Governance Contexts

Gujarat’s export success intersects with broader Indian industrial and governance dynamics:

• Coal India’s Critical Minerals Push: Coal India’s ₹16,000 crore capex for FY26, targeting lithium and cobalt, mirrors Gujarat’s diversification into high-value sectors like aerospace. Both leverage strategic investments to reduce import dependency, but face environmental scrutiny, as seen in Hasdeo Arand’s protests over 450,000–850,000 trees at risk.

• Hasdeo Arand Controversy: The Hasdeo Arand coal mining approvals highlight governance failures, such as forged gram sabha consents, paralleling Gujarat’s need for transparent stakeholder engagement to sustain industrial growth.

• Sona Comstar’s Succession Dispute: The Sona Comstar feud over a ₹8,200 crore stake underscores governance risks in family-run businesses, relevant for Gujarat’s MSMEs, which require robust succession planning to maintain export momentum.

• Kartavya Bhavan’s Governance Model: The inauguration of Kartavya Bhavan on August 6, 2025, reflects centralized efficiency, akin to Gujarat’s port-led logistics. However, privacy concerns in Kartavya Bhavan’s open offices echo the need for balanced governance in Gujarat’s export hubs.

• Mangampeta’s Sustainability: Mangampeta’s baryte mining, with zero-liquid-discharge systems, offers a model for Gujarat to address environmental concerns in chemicals and petroleum sectors.

Opportunities for Growth

Gujarat’s export ecosystem presents opportunities:

• Diversification: Expanding aerospace, shipbuilding, and pharmaceuticals can reduce reliance on petroleum, leveraging FTAs with the UAE (targeting $50 billion in trade) and Australia ($100 billion).

• MSME Support: Enhanced subsidies for international exhibitions, as suggested by ASSOCHAM, could boost Morbi’s ceramics and Surat’s textiles, aligning with the Districts as Export Hubs Initiative.

• Sustainability: Adopting Mangampeta’s eco-friendly practices, like afforestation, could mitigate environmental concerns, enhancing Gujarat’s global reputation.

• Infrastructure Investment: Expanding Mundra Port and GIFT City can streamline logistics, mirroring Kartavya Bhavan’s efficiency goals.

Future Outlook

Gujarat’s ₹9.83 trillion exports in FY25 position it as a cornerstone of India’s $824.9 billion total exports, per the Ministry of Commerce. With services exports at $387.5 billion (up 13.6% from FY24), Gujarat can further integrate its IT/ITES sector, following Karnataka and Tamil Nadu. By FY30, India’s exports are projected to reach $1 trillion, with Gujarat targeting a 30% share through:

• High-Value Exports: Scaling aerospace and pharmaceuticals, supported by Gujarat’s 33% share in India’s drug manufacturing.

• Critical Minerals: Leveraging Coal India’s model to explore lithium and cobalt in Gujarat’s mineral-rich regions like Kutch.

• Policy Reforms: Strengthening MSME support and FTAs to counter global tariffs, as seen in Sona Comstar’s challenges.

Gujarat’s ₹9.83 trillion export performance in FY25, led by Jamnagar’s petroleum sector and diversified into gems, pharmaceuticals, and aerospace, cements its status as India’s top exporting state, per FIEO. Despite a marginal dip, its ₹4.3 trillion lead over Maharashtra reflects robust infrastructure and policy support. Challenges like global tariffs, environmental concerns, and regional disparities, akin to Hasdeo Arand’s conflicts, require sustainable solutions. Drawing on Mangampeta’s eco-friendly mining, Coal India’s diversification, Sona Comstar’s governance lessons, and Kartavya Bhavan’s efficiency, Gujarat can sustain its export leadership, driving India toward a $1 trillion export economy by 2030.