India's merchandise exports rose 19.6 per cent year-on-year to a record $44.24 billion in July, even as the US-Iran conflict disrupted shipping routes, pushed up freight rates and created uncertainty across global supply chains. The Strait of Hormuz remains a major concern for international shipping, with vessels being rerouted, container availability tightening and transit schedules becoming less predictable. For Indian exporters, higher logistics costs are putting pressure on margins, making the sharp growth in shipments particularly significant.

The July figures show that India's export growth is being supported by several key sectors. Engineering goods exports increased 17.7 per cent to $12.24 billion, while electronics exports surged 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. The increase indicates that demand for Indian manufactured products has remained resilient despite higher transportation costs and geopolitical uncertainty affecting major trade routes.

One important factor behind the export performance is India's expanding market base. Commerce Secretary Rajesh Agrawal has pointed to faster export growth in non-traditional markets, including ASEAN, Africa, South Asia and North-East Asia. In July, exports to China jumped 64.57 per cent year-on-year to $2.2 billion, while shipments to Singapore rose 83.7 per cent to $1.6 billion. Exports to the United States also increased 12.85 per cent to $9.02 billion, giving Indian exporters multiple destinations as individual markets and shipping routes face disruption.

Also Read: India Green-Lights Inventory-Based E-Commerce Exports With Eye On Global Markets

India is also increasingly exporting higher-value manufactured products, which can provide companies with greater room to absorb rising freight expenses. Engineering goods exports rose 21 per cent in June to $11.48 billion, with shipments to China alone increasing 74 per cent. Electronics exports have also maintained strong momentum. This shift matters because specialised industrial products and precision components can offer stronger margins than lower-value commodities when shipping and logistics expenses increase.

The trend is visible at the company level as well. Gujarat-based Mangalam Worldwide Ltd reported export turnover of Rs 21.79 crore in July 2026, compared with Rs 5.76 crore during the same month last year, an increase of nearly 278 per cent. The company shipped 874 metric tonnes through 35 containers to more than 15 countries. Mangalam Global Enterprise Ltd, which operates in agro-processing, edible oils, castor products, oilseed meals and agricultural commodities, reported Rs 205.44 crore in revenue from foreign operations in its FY26 disclosures.

Industry executives said the current disruption is encouraging exporters to reduce dependence on individual markets and compete through reliability, quality and diversification rather than price alone. Higher freight costs and geopolitical risks remain significant challenges, but the ability to serve multiple markets could help Indian companies withstand disruptions to individual trade routes. The July export data suggests that while global shipping conditions remain difficult, India's broader market reach and growing strength in manufactured goods are helping sustain export momentum.

Also Read: Vizhinjam Port Begins EXIM Operations, Marking Major Shift In India’s Maritime Trade