Puducherry’s export profile possesses significant strength for further growth, says FIEO

Federation of Indian Export Organisations in association with Pondicherry Industrial Development and Investment Corporation Limited has started organising various programmes for MSMEs. | Photo Credit: S.S.KUMAR An analysis conducted by the Federation of Indian Export Organisations (FIEO) reveals that Puducherry’s export profile possesses significant strengths and opportunities for further diversification.FIEO, set up by the Ministry of Commerce, Government of India, in a communication said considering the export potential, especially of the Micro, Small and Medium Enterprises in the Union Territory, the organisation has launched various programmes in Puducherry and Karaikal regions to help MSMEs identify new overseas buyers and explore additional markets.. Puducherry’s merchandise exports has shown growth prospects during 2025-26. The exports touched ₹4,969 crore during the period registering a growth of around 13.63% over the previous year and exceeding the target envisaged under the Puducherry Export Policy of 2021.An analysis of Puducherry’s export profile reveals significant opportunities for further diversification. Pharmaceuticals is the leading export segment, with drug formulations and biologicals accounting for 36.60% of total exports in 2025-26, followed by electrical machinery and equipment at 14.58%, bulk drugs and drug intermediaries at 6.19% and auto components and parts at 4.82%, data showed. Destination-wise analysis showed that United States remained the major export destination for industries in Puducherry. The US accounted for 22.87% of exports in 2025-26, followed by United Kingdom at 6.98% and Germany at 6.72%. The other major export destinations are Guatemala (5.37%), 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 accounted for 62.02% of total exports. Analysis by the organisation also showed that there has been a 610.60% increase in exports of purified and distilled cashew nut shell liquid (CNSL) from US$2.07 million to US$14.68 million and a 23.94% increase in exports of other medicines put up for retail sale, which reached US$110.34 million, data revealed.However, as per the data gathered Puducherry accounts for only 0.13% of the country’s total exports, indicating considerable scope for expansion by widening the range of exportable products, strengthening emerging sectors and encouraging more MSMEs to participate in international trade. Exploring additional markets and expanding the range of products supplied to existing destinations could help exporters reduce market concentration and identify new business opportunities, FIEO observed. Awareness programmesConsidering the potential, FIEO in association with Pondicherry Industrial Development and Investment Corporation Limited (PIPDIC), has started organising various programmes for MSMEs. Representatives of MSMEs participated in an export readiness awareness programme under Centre’s Raising and Accelerating MSME Performance (RAMP) initiative held in Puducherry and Karaikal in the last two days.“Through these programmes, we aim to help MSMEs identify suitable export opportunities, access relevant government support, understand international market requirements and prepare for direct engagement with overseas buyers. The objective was to build upon Puducherry’s export growth, diversify its product and market base and enable more local enterprises to become competitive participants in global value chain,” the communication said Published - October 31, 2026 11:17 pm IST