India is a major player in the global economy and has seen significant growth in its exports over the years. In 2021, India exported US$394.8 billion worth of goods around the globe, up by 33.4% increase since 2017 and accelerating by 43.3% from 2020 to 2021.
India’s top exports by value in 2021 were refined petroleum oils, diamonds, medication mixes in dosage, jewelry and rice. These major exports approach one third (29.4%) of India’s overall export revenues.
India’s top trading partners in terms of countries that imported the most Indian shipments by dollar value during 2021 were the United States, United Arab Emirates, China, Bangladesh, and Hong Kong.
India has a relatively diversified range of exported goods and ranks among world-leading countries exporting diamonds, jewelry and refined petroleum.
The growth in India’s exports can be attributed to several factors such as its strategic location near highly populated trading partners including China, Pakistan and Bangladesh, its relatively weaker local currency since 2017 which makes India’s exports paid for in stronger US dollars relatively less expensive for international buyers, and its focus on improving the ease of doing business.
Overall, India’s export trends show a positive trajectory and the country is well-positioned to continue its growth in the global economy.
India's leading export destinations are the United States, the United Arab Emirates, the Netherlands, Bangladesh, and Hong Kong. The US remains India's top export destination, accounting for 18.2% of total exports in FY2022. The UAE is the second largest export destination, accounting for 11.4% of total exports. The Netherlands is the third largest export destination, accounting for 4.7% of total exports.
The main export items from India are petroleum products, gems and jewelry, engineering goods, textiles, and chemicals. Petroleum products are the largest export item, accounting for 22.8% of total exports in FY2022. Gems and jewelry are the second largest export item, accounting for 14.7% of total exports. Engineering goods are the third largest export item, accounting for 12.1% of total exports. Textiles are the fourth largest export item, accounting for 8.4% of total exports. Chemicals are the fifth largest export item, accounting for 7.2% of total exports.
The government has taken a number of measures to boost exports, including:
- Simplifying the export process
- Providing incentives to exporters
- Promoting exports through trade fairs and exhibitions
- Signing free trade agreements with other countries
These measures have helped to boost India's exports and are expected to continue to do so in the coming years.
Outlook for India's Exports in 2023
The outlook for India's exports in FY 2023 is positive.
Given below is the Exports in US$Billion
Merchandise exports have registered highest ever annual exports of USD 447.46 billion with 6.03% growth during FY 2022-23 surpassing the previous year (FY2021-22) record exports of USD 422.00 billion.
This is against the government target of US$450 billion for merchandise exports in FY2023. This target has been achieved, given the strong growth in exports in recent years.
Services export lead the overall exports growth and projected to set a new record annual value of USD 322.72 billion with growth rate at 26.79 percent during FY 2022-23 over FY 2021-22.
The main factors that will drive India's exports in FY23-24 are:
- The continued growth of the global economy though affected by high interest rates and stagflation/recession.
- The rising demand for Indian products & services in major export markets,including value add petroleum products in Europe,even though the base Oil & Gas products are imported from Russia.
- The government's continued focus on boosting exports
The government has taken a number of measures to boost exports, including:
- Simplifying the export process
- Providing incentives to exporters
- Promoting exports through trade fairs and exhibitions
- Signing free trade agreements with other countries
These measures have helped to boost India's exports and are expected to continue to do so in the coming years.
Overall, the outlook for India's exports in FY 23-24 is positive despite muted growth in april 2023 at 2% including Services Exports estimated at US$30.36 bn and Merchandise Exports estimated at US$34.66bn
The government's focus on boosting exports and the continued demand for Indian products & services in the global economy are expected to drive exports to new heights.
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