Despite a challenging global economic environment, India’s merchandise exports are showing remarkable resilience in select sectors. An analysis by MVIRDC WTC Mumbai reveals that, during the period of January to July 2023, a total of 48 commodities witnessed significant growth in exports in real terms, out of a total of 105 commodities for which quantity-wise foreign trade data is published by the Directorate General of Commercial Intelligence and Statistics (DGCIS).
Some of the noteworthy commodities experiencing growth include moulding machineries, beverages, cereals, fruits, vegetables, drugs & pharmaceuticals, leather, marine products, fertilizers, iron ore, cosmetics & toiletries, and inorganic chemicals. However, it’s worth noting that in ten commodities, the quantity exported has grown while the value has contracted. This is attributed to falling raw material prices or Indian exporters reducing final product prices to maintain competitiveness in the global market. These commodities include petroleum products, marine products, cotton yarn, inorganic chemicals, tea, finished leather, cashews, dye intermediates, cocoa products, and jute raw, collectively accounting for 23% of India’s total goods exports. Furthermore, India’s exports have expanded their reach to 107 countries out of 233 global markets with which India has trade relationships. The share of these 107 countries in India’s overall exports has grown from 21% in January-July 2022 to 27% in the current year.
Key highlights in geographical trends include:
- Significant export growth to Albania, driven by shipments of petroleum products.
- Substantial export expansion to the Netherlands, the UK, Saudi Arabia, Israel, Russia, and Egypt.
- A promising export destination in Djibouti, with exports nearly doubling, led by sugar, petroleum, and pharmaceutical products.
- Exports to Cuba on the rise, primarily through shipments of rice, medicines, and miscellaneous manufactured goods.
- Emerging Asian markets for India’s spices, with exports to China growing by 94% in quantity terms and to Thailand by 38%.
- A tenfold increase in fertilizer exports to Nepal during January-July 2023.
In conclusion, India’s exports are gaining global competitiveness in niche sectors, and Indian exporters are expanding into new markets such as Albania, Armenia, Romania, Cuba, Iraq, Djibouti, and Portugal. These markets hold the potential to diversify Indian exports beyond traditional concentrations in the USA and European Union.
About MVIRDC World Trade Center, Mumbai: Established in 1970, MVIRDC World Trade Center facilitates exchange of trade missions with foreign countries, hosts exhibitions of Indian as well as foreign products to boost India’s presence in international trade as well as organises interactive meetings with top officials of consulates.