India’s export basket is witnessing huge growth with some amazing items! The country’s export portfolio is diversifying with significant growth in unexpected items such as bananas, ghee, furniture, office equipment, and solar photovoltaic (PV) modules. While traditional exports such as engineering goods, pharmaceuticals, gems and jewelery continue to dominate, these emerging sectors are providing additional impetus to overseas trade.
India’s export performance needs to be diversified, especially given the 4.83% decline in goods exports during November, which affected sectors such as petroleum products, gems and jewellery, steel and agricultural produce.
The Ministry of Trade and Industry has set an ambitious target of crossing £800 billion in combined goods and services exports for FY25.
“Banana is among the 20 agricultural products we have identified for which we want to increase exports as currently, India’s share in their global exports is low,” an official told ET.
Small Wonders of India’s Exports
The government has identified several agricultural products including watermelon, ghee, guava, green chilli, capsicum, okra, garlic, onion and alcoholic beverages for export promotion.
India aims to increase its global exports to 4-5% in the coming years from the current 2.5%. Countries like USA, Malaysia, Canada, Russia, Germany, France, South Korea, China, Indonesia, Japan, Italy, Belgium and UK offer ample opportunities.
“The acceptance of Indian single malt whiskey is growing in the EU, the US and the Far East,” said Anant Iyer, Director General, Confederation of Indian Alcoholic Beverage Companies (CIABC).
Exports of India
Alcoholic beverage exports rose 8 percent year-on-year during the April-October period, with whiskey exports up 16 percent. Officials also noted an increase in exports of certain spices, especially black pepper.
Office stationery products are gaining popularity in markets such as Nicaragua, El Salvador and Cyprus. India has become the sixth largest exporter of solar PV modules globally, with its share of global exports increasing from 0.4% in 2013 to 2.51% in 2023.
Read this also Top 10 Countries With Largest Gold Reserves In 2024: India Joins The Ranks! Where do the US and 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 India EXIM Bank Deputy Managing Director Deepali Agarwal, toy exports are expected to maintain their growth momentum.
“Furthermore, exports of dyes, organic chemicals, and inorganic chemicals are likely to remain strong, which will help improve global demand sentiment,” he said.
PLI schemes are expected to boost the electronics and engineering equipment sectors, which will maintain their position as key drivers of growth.
Agarwal said, “The automotive sector is also poised to witness an increase in export revenues, based on improving global demand in key markets and the adoption of China +1 strategy by global players, which will focus on sourcing and promoting diversification in manufacturing locations.”
“India’s apparel exports are also likely to maintain their upward momentum.”
Despite potential challenges in petroleum product exports, analysts point out that exports of non-oil merchandise and services will lead the country’s overall export performance. The government is actively exploring new markets for iron ore exports, including France, Saudi Arabia and Kenya.
For pharmaceutical exports, the focus is on Latvia, Chad and Montenegro, while Greece and Croatia are being targeted for engineering goods. Additionally, Guatemala and Morocco are being developed as new destinations for Indian cotton yarn exports.