Electronics, pharma and engineering set to spearhead India’s new export engine

A research report by Yes Securities reveals that India’s recent Free Trade Agreements (FTAs) are driving a structural shift from protectionism to global integration. High-tech and specialised industries are poised to capture a massive “FTA dividend,” while mature sectors face severe headwinds. Electronics emerged as the top winner, backed by a 55.2% growth probability in Monte Carlo simulations. Driven by PLI schemes and expanding Apple networks, the sector is moving aggressively into PCBs and semiconductor packaging. Pharmaceuticals also ranks highly, maintaining a strong structural core with a high Revealed Comparative Advantage that will benefit as FTAs streamline Western regulatory barriers. Auto ancillaries and engineering goods show positive momentum tied to global EV localisation and infrastructure demand. Conversely, the report identifies substantial downside risks for traditional sectors like textiles, gems and jewellery, and speciality chemicals, noting they face stagnant export momentum despite tariff relaxations, as per a report.

Please visit our youtube channel https://www.youtube.com/@ikargosindia for fortnightly logistics news analysis and more!