- India's merchandise exports reached a record $44.24 billion in July, up 19.6% year-on-year
- Engineering goods exports rose 17.7%, electronics exports surged 57.4% in July
- Freight rates and container shortages are increasing export costs and causing delays
The US-Iran deadlock continues to keep the Strait of Hormuz on edge. Ships are being rerouted. Freight rates are climbing. Container shortages are adding to the pain. Transit times are becoming harder to predict.
For exporters, this is hardly an ideal environment. Yet India's merchandise exports hit a record $44.24 billion in July, up 19.6 per cent from a year earlier.
The numbers become even more interesting when you look beneath the headline figure. Engineering goods exports rose 17.7 per cent to $12.24 billion. Electronics exports jumped 57.4 per cent to around $5.9 billion. Exports to the Middle East also rose 8.6 per cent year-on-year to $5.7 billion.
Freight Costs Remain Big Headache
The catch is that Indian exporters are paying more to move their goods. Freight rates on South Asia-US and South Asia. Europe routes have risen sharply in recent weeks. Rates to the Middle East remain elevated too, amid geopolitical disruption, higher fuel costs and tight vessel capacity.
There is another problem. Containers are harder to secure. Shipments are being delayed. Vessel schedules are less predictable. For exporters of rice, textiles, pharmaceuticals and engineering goods, all this can quickly eat into margins.
A product may leave an Indian factory at the same price as before. But getting it to the customer can now cost substantially more. This makes India's export growth even more significant.
So, Why Are Exports Still Rising?
India is selling to more markets. The country's export growth is no longer dependent on a handful of traditional destinations.
Commerce Secretary Rajesh Agrawal has said exports are seeing faster growth in non-traditional markets, including ASEAN, Africa, South Asia and North-East Asia.
The July numbers underline that shift. Exports to China jumped 64.57 per cent year-on-year to $2.2 billion. Shipments to Singapore rose 83.7 per cent to $1.6 billion. Exports to the US increased 12.85 per cent to $9.02 billion.
When one shipping route becomes risky or expensive, exporters have other markets to fall back on. A disruption in the Middle East does not automatically wipe out demand from China, ASEAN, North America or Africa. This gives Indian companies room to adjust.
Besides, India is also moving up the value chain. Indian exporters are increasingly selling products where value matters as much as volume. A low-value commodity has limited room to absorb a jump in shipping costs. A specialised industrial product, precision component or higher-value manufactured product has a better chance.
The export data reflects this shift. Engineering goods exports rose 17.71 per cent year-on-year to $12.24 billion in July. Electronics exports surged 57.4 per cent to $5.92 billion.
The momentum was already visible in June. Engineering exports had risen 21 per cent to $11.48 billion, with shipments to China alone climbing 74 per cent.
The trend can also be seen at the company level. Gujarat-based Mangalam Worldwide Ltd (MWL) told NDTV that its export turnover reached a record Rs 21.79 crore in July 2026, compared with Rs 5.76 crore in July last year. That is an increase of nearly 278 per cent in a year. The company shipped 874 MT through 35 containers to more than 15 countries.
Another company, Mangalam Global Enterprise Ltd (MGEL), operates across agro-processing, edible oils, castor products, oilseed meals and agricultural commodities. Its FY26 disclosures reported Rs 205.44 crore in revenue from foreign operations.
Chandragupt Prakash Mangal, Managing Director, Mangalam Worldwide, said the global supply chain is being reassessed almost in real time. "Global supply chains are being reassessed almost in real time. For Indian manufacturers, the opportunity is to establish themselves as reliable and technically capable partners across multiple markets rather than depend on a single geography," Mangal said.
When shipping routes are disrupted, buyers are not just looking for the cheapest supplier. They also want someone who can deliver consistently.
Price still matters. But quality, reliability and delivery timelines matter more than they did before. Mangal said the resilience of Indian exports will depend increasingly on how businesses manage everything from sourcing and production to logistics and customer relationships. "Consistent quality and delivery can become as important as price," he said.
Vipin Prakash Mangal, Executive Chairman, Mangalam Global Enterprise Limited, said the disruption could also force Indian exporters to make a necessary transition. "Higher freight costs and geopolitical disruptions are testing exporters, but they are also accelerating a necessary shift - from competing on price alone to building diversified markets and delivering greater value. That is where India's next export opportunity lies," he said.
It is a shift India has been trying to make for years. The current turmoil may simply be speeding it up.
