India’s exports have seen significant growth across various sectors, driven by technological advancements and competitive manufacturing. The nation has expanded its reach in areas such as petroleum oils, agrochemicals, semiconductors, and precious stones, solidifying its position in global trade.
In 2023, India became the second-largest global exporter of petroleum oils, with exports increasing from $60.84 billion in 2014 to $84.96 billion. The country now holds a 12.59% share of the global market. Similarly, India’s export of agrochemicals, particularly insecticides, rodenticides, and fungicides, reached $4.32 billion, making it the third-largest exporter in the sector. India’s sugar exports also saw a rise, with a market share of 12.21%, positioning it as the second-largest global exporter.
India’s electronics manufacturing sector has also expanded, with exports of electrical transformers and components growing from $1.08 billion in 2014 to $2.85 billion in 2023. Exports of rubber pneumatic tyres have increased from $1.65 billion to $2.66 billion, placing India in eighth position globally. Exports of parts for electric motors and generators also grew, reaching $1.15 billion, and India now holds the sixth spot in the global market.
India’s focus on semiconductors has also yielded positive results, with exports increasing from $0.23 billion in 2014 to $1.91 billion in 2023. Precious and semi-precious stone exports have been particularly successful, accounting for 36.53% of the global market, with exports valued at $1.52 billion.
Government Initiatives to Boost Exports
The Government has launched several initiatives to support exports, including the launch of a new Foreign Trade Policy in April 2023. This policy aims to reduce transaction costs, promote collaboration between exporters and states, and focus on emerging sectors like e-commerce. It also introduced the “Towns of Export Excellence Scheme” to recognize new export hubs and supports exporters through various incentive schemes.
The government has extended the Interest Equalization Scheme for export credits until August 2024 and introduced measures to improve infrastructure for trade. Initiatives like the Trade Infrastructure for Export Scheme (TIES) and the Market Access Initiative (MAI) offer financial assistance to exporters. Moreover, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has expanded to cover more sectors, including pharmaceuticals and chemicals.
India has also made strides in simplifying business processes. The Goods and Services Tax (GST), corporate tax reforms, and the introduction of the National Single Window System (NSWS) have improved ease of doing business. Reforms have reduced compliance burdens, with over 42,000 compliances cut and more than 3,800 provisions decriminalized.
To support the export of labor-intensive sectors, schemes like the Rebate of State and Central Levies and Taxes (RoSCTL) have been in place since 2019. India’s push for a digital export ecosystem has improved small and medium enterprises’ access to information and financial support.
Future Plans and Growth
India’s roadmap for 2047 prioritizes innovation, global competitiveness, and integration into global supply chains. The country’s rank in the World Bank’s Doing Business Report has improved, moving from 142nd in 2014 to 63rd in 2019. India has also advanced in the Global Innovation Index, climbing from 81st in 2015 to 40th in 2023.
The government’s focus on infrastructure is also evident with initiatives like the PM GatiShakti National Master Plan, which aims to improve multimodal connectivity. The National Logistics Policy introduced in 2022 aims to reduce logistics costs and enhance efficiency.
India is actively fostering the growth of its e-commerce exports, with a target of $100 billion by 2030. Several measures have been introduced to improve logistics and reduce transaction costs, particularly in Tier 2 and Tier 3 cities. New export hubs, like Bharat Mart in Dubai, aim to connect Indian micro, small, and medium enterprises (MSMEs) to global markets.
