Karnataka Total Exports Reach ₹19.7 Lakh Crore in FY26, Up 9.5% Year-on-Year

Key Takeaways

• Karnataka is the number 1 exporter in India if we talk about software and services. The overall export increased by 9.5%, which is around 19.7 lakh crore in 2026.
   
• According to last year’s data, Karnataka’s exports increased by 13.7%, which is around Rs.14,03,811 crore as per the IBEF report.

Did Karnataka’s Exports Actually Grow 9.5% in FY26? What Does ₹19.7 Lakh Crore Include?

Karnataka exports increased by 9.5% in the 2025 to 2026, and the cost around of this 19.7 lakh crore. The state is become the No.1 exporter for software & services, and 4th for merchandise exports from the country.

In a post on X, CM Shivakumar stated that, “Karnataka's growth story continues to set new benchmarks. Exports growing by 9.5% in FY 2025-26, reaching nearly 19.7 lakh crore, our state has reaffirmed its position as India's leading software & services exporter.”

Minister for Industries MB Patil added that Karnataka's export base was diversifying quickly, with engineering goods, pharmaceuticals, chemicals, aerospace, and food processing playing leading roles. While electronic goods were the largest export category for FY25, representing 25.75% of Karnataka's merchandise exports, engineering goods represented 23.88%. Karnataka's contribution to India's overall aerospace manufacturing and exports is estimated between 60%-65%.

How Will Karnataka's Export Growth Affect Jobs and Incomes Across India?

Karnataka will reach ₹19.7 lakh crore export milestone in 2026. India's total exports hit a record $863.1 billion in FY26, according to the Ministry of Commerce and Industry. Karnataka's software-led export engine plays the most important role in reaching $421.3 billion in FY26; India’s services exports grew at a 9.3% CAGR over 12 years. It is very good for workers who work in IT, pharma, aerospace, and food processing because they will get better salaries and more hiring.

Karnataka’s Industrial Policy 2024-29 targets 20 lakh jobs by 2029 and investments of around ₹7,50,000 crore. More jobs mean more salaried borrowers entering the formal credit market. LoansJagat notes that the RBI's cumulative 125 basis point cut in 2025 already reduced total interest outgo by up to ₹7.71 lakh on a ₹50 lakh home loan. As Karnataka's export growth creates more employment, new home loan demand in Bengaluru and tier-2 cities like Mysuru and Mangaluru is expected to rise further in FY27.

What Do Experts Say About Karnataka's Export Growth Outlook?

Minister MB Patil said this on June 16, 2026. We have sustained our position as the Number 1 software and service exporter from India and ranked 4th in merchandise exports, testament to the robust industries, innovation environment, skilled talent, and investment-centric climate we nurture. 

CM Shivakumar remarked, Bengaluru has led this drive, every part of our state is contributing to Karnataka’s rising global imprint. 

A concern still exists. CareEdge Ratings warned in December 2025 that India’s goods export growth slowed from 3.3% in April-October FY25 to just 0.5% in the same period of FY26, citing US tariff pressures. For Karnataka, this means merchandise growth may face headwinds even as software exports remain strong. Minister Patil's stated solution is clear: “To further strengthen manufacturing, attract investments, create jobs and position Karnataka as a leading global export hub.”

Conclusion

Karnataka's 9.5% export growth to ₹19.7 lakh crore in FY26 cements its role as India's export engine. Software and services will keep leading. But sustaining the 4th rank in merchandise exports will need consistent policy support, especially against global tariff headwinds.

FAQs

Is the Karnataka’s share in India’s total exports?

Yes,Karnataka is one of the biggest contributor to the Indian exports, and that is due to the huge contribution from software services and services industries in overall Indian exports.

How is it that states like Kerala, Karnataka and Andhra Pradesh are building dams on river against Tamil Nadu despite receiving rice and food cultivated from them?

The rivers passing through Tamil Nadu have been dammed by states like Kerala, Karnataka and Andhra Pradesh for the requirement of the drinking water of those states and electricity production besides helping the agriculture of the state too.