Puducherry’s merchandise exports registered a growth of 13.63% in 2025-26, reaching ₹4,969 crore and surpassing the target set under the Union Territory’s Export Policy 2021, according to an analysis by the Federation of Indian Export Organisations (FIEO).
The analysis highlights significant potential for further export growth through product and market diversification, particularly by encouraging greater participation of Micro, Small and Medium Enterprises (MSMEs) in international trade.
Pharmaceuticals emerged as Puducherry’s leading export sector, with drug formulations and biologicals accounting for 36.60% of total exports during 2025-26. Electrical machinery and equipment contributed 14.58%, followed by bulk drugs and drug intermediaries at 6.19%, and auto components and parts at 4.82%.
The United States remained Puducherry’s largest export destination, accounting for 22.87% of total exports. The United Kingdom ranked second with a 6.98% share, followed by Germany at 6.72%. Other major destinations included Guatemala (5.37%), the United Arab Emirates (4.92%), Australia (4.80%), France (3.09%), El Salvador (2.56%), Vietnam (2.49%) and China (2.23%).
The top ten destinations together accounted for 62.02% of Puducherry’s exports, highlighting the importance of expanding market access and reducing dependence on a limited number of overseas markets.
The FIEO analysis also identified strong growth in select product categories. Exports of purified and distilled cashew nut shell liquid (CNSL) surged by 610.60%, increasing from US$2.07 million to US$14.68 million. Exports of other medicines put up for retail sale rose by 23.94% to reach US$110.34 million.
Despite the positive growth, Puducherry accounts for just 0.13% of India’s total exports, indicating considerable untapped potential. FIEO noted that widening the range of exportable products, strengthening emerging sectors and bringing more MSMEs into the export ecosystem could help the Union Territory enhance its contribution to India’s international trade.
The organisation also emphasised the need to explore additional overseas markets and expand the range of products supplied to existing destinations. Such efforts would help exporters reduce market concentration, mitigate market-specific risks and identify new business opportunities.
FIEO Steps Up MSME Export Awareness Initiatives
To tap the export potential of local enterprises, FIEO, in association with the Pondicherry Industrial Development and Investment Corporation Limited (PIPDIC), has initiated a series of programmes aimed at strengthening the export capabilities of MSMEs in Puducherry and Karaikal.
As part of these efforts, export-readiness awareness programmes were organised in both regions over the last two days under the Centre’s Raising and Accelerating MSME Performance (RAMP) initiative, with participation from representatives of local MSMEs.
FIEO said the programmes are designed to help enterprises identify suitable export opportunities, access relevant government support, understand international market requirements and prepare for direct engagement with overseas buyers.
The initiative seeks to build on Puducherry’s recent export growth by diversifying its product and market base while enabling more local enterprises to become competitive participants in global value chains.
With its established pharmaceutical and engineering sectors, along with emerging export opportunities in other product categories, Puducherry has considerable scope to strengthen its presence in international markets through targeted MSME development and wider market diversification.