India’s exports basket is seeing a big growth with some surprise items! The country’s export portfolio is diversifying with significant growth in unexpected items like bananas, ghee, furniture, office supplies, and solar photovoltaic (PV) modules. Whilst traditional exports like engineering goods, pharmaceuticals, gems and jewellery remain dominant, these emerging sectors are providing additional momentum to overseas trade.
India’s export performance requires diversification, particularly given the 4.83% decline in goods exports during November, affecting sectors like petroleum products, gems and jewellery, iron ore, and agricultural produce.
The commerce and industry ministry has set an ambitious target to surpass £800 billion in combined goods and services exports for FY25.
“Banana is among the 20 agri products we have identified whose exports we want to boost as, at present, India’s share is low in their global exports,” an official told ET.
Small Wonders of India’s Exports
The government has identified several agricultural products including watermelons, ghee, guavas, green chilli, capsicum, okra, garlic, onions and alcoholic beverages for export promotion.
India aims to increase its global export share to 4-5% in the coming years from the current 2.5%. Countries like the US, Malaysia, Canada, Russia, Germany, France, South Korea, China, Indonesia, Japan, Italy, Belgium and the UK present substantial opportunities.
“The acceptance for Indian single malt whisky is growing in the EU, US and the far East,” said Anant Iyer, director general, Confederation of Indian Alcoholic Beverage Companies (CIABC).
India’s Exports
Alcoholic beverage exports increased by 8% year-on-year during April-October, with whisky exports rising by 16%. Officials also noted growth in specific spice exports, particularly black pepper.
Office stationery products are gaining popularity in markets like Nicaragua, El Salvador and Cyprus. India has become the sixth largest exporter of solar PV modules globally, with its share in global exports increasing to 2.51% in 2023 from 0.4% in 2013.
Also Read | Top 10 Countries With Highest Gold Reserves 2024: India Moves Up Ranks! Where do the US, China Stand? Check List
During April-October, India’s exports of PV cells in modules or panels reached $711.95 million, with the US receiving 96% of these shipments. According to Deepali Agrawal, deputy managing director of India Exim Bank, toy exports are expected to maintain their growth trajectory.
“Furthermore, the export of dyes, organic chemicals, and inorganic chemicals is projected to remain strong, supported by improving global demand sentiments,” she said.
The PLI schemes are expected to bolster electronics and engineering goods sectors, maintaining their position as key growth drivers.
“The automotive sector is also set to witness a surge in export revenues, underpinned by improving global demand in key markets and the adoption of the China+1 strategy by global players, which is driving diversification in sourcing and manufacturing locations,” Agrawal said.
“India’s apparel exports are also likely to maintain their upward trajectory.”
Despite potential challenges in petroleum product exports, analysts indicate that non-oil merchandise and services exports will lead the country’s overall export performance. The government is actively exploring new markets, including France, Saudi Arabia and Kenya for iron ore exports.
For pharmaceutical exports, the focus is on Latvia, Chad and Montenegro, whilst Greece and Croatia are being targeted for engineering goods. Additionally, Guatemala and Morocco are being developed as new destinations for Indian cotton yarn exports.
