India’s exports rising significantly in Global Trade
NEW DELHI : Masterstroke by Modi Government–as America, Europe, China, Japan buying these products from India, the list includes bananas, clarified butter (ghee), furniture, office stationery, and solar PV modules. Traditional export sectors such as engineering goods, pharmaceuticals, gems and jewelry, and electronics also also continue to drive growth. Meanwhile, the government is actively identifying new markets to expand India’s share in global trade.
India’s Export Boom
India’s export portfolio is evolving with the addition of new products, such as bananas, ghee, furniture, office supplies, and solar panels, alongside its established exports. These new entrants are strengthening India’s foothold in the global market.
Currently, India accounts for 2.5% of global exports, and the government aims to increase this share to 4-5% in the coming years. Targeted markets include the United States, Malaysia, Canada, Russia, Germany, France, South Korea, China, Indonesia, Japan, Italy, Belgium, and the United Kingdom.
In November, export challenges arose for petroleum products, gems and jewelry, iron ore, and fruits and vegetables. To address these gaps, the Ministry of Commerce and Industry has focused on diversifying into new products and markets. The export target for goods and services in FY 2024-25 is set at $800 billion.
Agricultural Products
India is promoting 20 key agricultural products, with bananas as a priority due to its low current global market share. Other products in focus include, Watermelon, Guava, Green chilies, Bell peppers, Okra, Garlic, Onions, Alcoholic beverages
Indian Single Malt Whisky
Indian single malt whisky is gaining traction in markets such as the European Union, the United States, and East Asia. According to the Confederation of Indian Alcoholic Beverage Companies (CIABC), exports of whisky rose 16% year-over-year during April-October, contributing to an overall 8% growth in alcoholic beverage exports.
Some spices, like black pepper, are also witnessing steady growth. India has emerged as the 6th largest exporter of solar PV modules. The country’s share in global solar PV exports increased from 0.4% in 2013 to 2.51% in 2023. Between April and October, India exported $711.95 million worth of PV cells, with 96% shipped to the U.S.
Products like registers and diaries are gaining popularity in countries like Nicaragua, El Salvador, and Cyprus. Toy exports are showing consistent growth, while electronics and engineering goods remain the primary drivers of India’s export growth.
Government Strategies To Expand Exports
India is planning to explore new markets like France, Saudi Arabia, Kenya and for pharmaceuticals, countries like Latvia, Chad, Montenegro, for engineering goods in Greece, Croatia and for cotton yarn, it is looking for a base in Guatemala, Morocco.
Production-Linked Incentive (PLI) Scheme
The PLI scheme has supported sectors like electronics and engineering goods, helping them maintain robust export growth. Petroleum products are facing challenges in maintaining export levels. Whereas growth in non-oil goods and services exports is expected to bolster overall performance.