India's Top 2 Export Products in 2025 - Detailed Analysis

Ever wondered which two products practically carry India’s trade flag abroad? In 2025 the answer narrows down to two power‑houses: refined petroleum and gems‑and‑jewellery. These sectors together account for over a third of the country’s total export value, dwarfing all other categories. This guide breaks down why they matter, where the money comes from, and how you can tap the momentum for your own export venture.

Key Takeaways

• India's top export products in 2025 are refined petroleum and gems‑and‑jewellery.
• Petroleum exports generated about $55 billion, while gems‑and‑jewellery added $44 billion.
• Major markets: United States, United Arab Emirates for petroleum; United States, Hong Kong for jewellery.
• Growth drivers include higher global oil prices, new refinery capacity, and rising luxury demand in Asia.
• Policy shifts such as reduced customs duty and export‑linked credit schemes are boosting both sectors.

India’s Export Landscape in 2025

India is a rapidly growing economy with a diversified export basket. In 2024‑25 the nation shipped goods worth $630 billion, a 7 % rise over the previous fiscal year. While services remain a strong pillar, goods exports dominate the trade balance, and two categories alone contribute more than 20 % of total export earnings.

Historically, textiles, pharmaceuticals, and IT services have been the backbone of Indian trade. However, recent shifts in global demand, domestic capacity upgrades, and strategic government incentives have propelled refined petroleum and gems‑and‑jewellery to the forefront. Understanding the dynamics behind these two leaders gives businesses a clear signal of where future opportunities lie.

Refined Petroleum - The Engine of Export Growth

Petroleum products have surged to the top of the export list, driven by a combination of higher global oil prices and a massive boost in domestic refining capacity. As of March 2025, India exported $55 billion worth of refined fuels, diesel, and aviation turbine fuel (ATF). This represents a 15 % YoY increase, outpacing the global average growth of 8 % for petroleum trade.

Key Indian states such as Gujarat, Maharashtra, and Tamil Nadu host over 80 % of the country’s refineries, many of which are new, high‑efficiency units commissioned after 2020. The latest refinery at Jamnagar (Reliance) added 15 % more crude‑to‑product conversion capacity, allowing India to meet both domestic demand and export commitments.

Major destination markets include the United States (22 % of petroleum exports), United Arab Emirates (18 %), and Singapore (12 %). These buyers value India’s consistent quality, competitive pricing, and reliable delivery schedules. Moreover, strategic supply‑chain agreements with Gulf carriers have reduced shipping time, making Indian fuel more attractive than some Middle‑East alternatives.

Gems & Jewellery - Glittering the Trade Charts

Gems & jewellery have long been a hallmark of Indian craftsmanship, but 2025 marked a record year. Exports reached $44 billion, a 12 % jump from the previous fiscal year. The segment’s growth stems from rising luxury consumption in East Asia, especially China and Hong Kong, and a surge in online jewellery retail platforms.

Key production hubs include Gujarat’s Surat district, renowned for diamond cutting, and Tamil Nadu’s Chennai, a centre for gold jewellery design. Together, these regions account for 70 % of the nation’s gem‑related output. Government schemes such as the “Jewellery Export Promotion Scheme” (JEPS) have provided 10 % subsidies on export‑linked financing, further energizing the sector.

Top export destinations are the United States (25 % share), Hong Kong (20 %), and the United Arab Emirates (15 %). The United States market is driven by demand for high‑end diamond pieces, while Hong Kong serves as a re‑export hub to Asian luxury consumers.

Head‑to‑Head Comparison

Factors Powering the Leaders

Both sectors benefit from supportive government policies. The Ministry of Commerce’s “Export Promotion Capital Goods” (EPCG) scheme allows duty‑free import of capital equipment for exporters, which has been crucial for refinery upgrades and jewellery manufacturing tools.

Internationally, the World Trade Organization (World Trade Organization) has kept tariff barriers relatively low for these categories, encouraging bilateral trade agreements. Recent free‑trade talks between India and the Gulf Cooperation Council have further reduced customs duties on petroleum, while the India‑U.S. Trade Policy Forum has opened channels for high‑value jewellery.

Supply‑chain resilience also matters. India's strategic location on the Indian Ocean gives it a shorter sea‑lane to the Middle East and Europe compared to many competitors. Port upgrades at Mumbai and Chennai now handle 30 % more container volume, cutting average transit times by two days.

Policy Outlook and Future Trends

Looking ahead, the government plans to launch a “Renewable Energy Export Initiative” that could diversify the petroleum export basket into refined bio‑fuels. If successful, this shift may moderate the sector’s reliance on crude oil prices and open new markets in Europe seeking greener energy.

In the jewellery arena, the “Digital Hallmark” program aims to certify diamonds using blockchain, enhancing trust among overseas buyers. Early pilots show a potential 5 % premium for blockchain‑verified stones, signalling a lucrative niche for forward‑looking exporters.

Both initiatives underscore a broader trend: India is moving from volume‑based exports to value‑added, technology‑driven offerings. Companies that invest in R&D, digital certification, and sustainable practices are likely to capture a larger share of the export pie.

How Your Business Can Ride the Wave

• Identify the niche. For petroleum, consider downstream products like lubricants or specialty fuels where margins are higher. For jewellery, focus on certified diamonds or bespoke designs targeting luxury consumers.
• Leverage export‑linked credit facilities offered by the Export‑Import Bank of India. These loans often come with lower interest rates and flexible repayment tied to shipment schedules.
• Partner with logistics providers that specialize in cold‑chain (for high‑value jewellery) or bulk tanker shipping (for petroleum). Reliable freight reduces lead‑time penalties.
• Stay compliant with customs duty structures. The latest amendment (2025‑2026) reduced basic customs duty on refined petroleum from 5 % to 3 % for countries with which India holds a free‑trade agreement.
• Invest in digital marketing targeting overseas B2B buyers. Platforms like Alibaba, GlobalSources, and even LinkedIn have dedicated export‑focused communities.

Common Pitfalls to Avoid

1. Ignoring certification requirements. Many Gulf buyers demand ISO‑9001 or FSSAI certificates for petroleum, while jewellery markets often require Hallmark marks.
2. Underestimating currency risk. Fluctuations in the rupee against the dollar can erode profit margins; consider forward contracts or hedging.
3. Neglecting after‑sales support. For petroleum, end‑users value prompt technical assistance. For jewellery, offering repair or resizing services builds brand loyalty.
4. Relying on a single market. Diversify your customer base across at least three regions to buffer against geopolitical shocks.

Next Steps for Aspiring Exporters

Start by registering with the DGFT (Directorate General of Foreign Trade) and obtaining an IEC (Import‑Export Code). Then conduct a market‑size analysis for your chosen product-use data from the Ministry of Commerce’s Export Statistics portal.

Finally, create a pilot shipment plan: select a reliable freight forwarder, secure necessary certifications, and negotiate payment terms (LC, DP, or open account) that match your risk tolerance. A small‑scale test run lets you fine‑tune pricing, logistics, and documentation before scaling up.