The Aatmanirbhar Bharat and “Swa”-based economy has guided the Modi government at the Union. The policies implemented occasionally to enhance the economy are now producing positive outcomes. Continued efforts will yield strong positive economic results across all industries. The increase in confidence, trust, and respect at the international level for Indians and the Modi government has resulted in 800 crore buyers for Indian businesses and industries. Youths must improve their knowledge, skills, and research aptitude to compete in the global economy in the coming years.
Exceptional successes in the export environment have defined India’s road to becoming a global economic powerhouse. The country has greatly advanced in various industries, including petroleum oils, agrochemicals, semiconductors, and precious stones. This increase indicates India’s capacity to meet global demand through improved technology, innovative techniques, and competitive manufacturing. Supported by strong government initiatives, the country is extending its export base and enhancing its standing as a dependable worldwide supplier. India’s export performance in several important product categories at the 4-digit HS level has been impressive, with the country retaining or improving its position among the top ten global suppliers, all with export values above $1 billion in 2023.
Petroleum Sector
The petroleum sector (Petroleum Oils and Oils Obtained from Bituminous Minerals) has experienced rapid growth, with export values rising from $60.84 billion in 2014 to $84.96 billion in 2023, accounting for 12.59% of the global market. This tremendous leap has propelled India to the position of the second-largest global exporter, thanks to enhanced refining facilities, greater production capacity, and adherence to international standards, cementing its status as a reliable energy supplier worldwide. Furthermore, India’s coal tar distillation products exports reached $1.71 billion in 2023, accounting for 5.48 per cent of the global market and ranking fourth overall, demonstrating its relevance in industrial value chains.
Agrochemical sector
India has greatly succeeded in the agrochemical sector, particularly with insecticides, rodents, and fungicides. Exports reached $4.32 billion in 2023, accounting for 10.85 per cent of the worldwide market, up from 5.89% in 2014. Investments in research and development, together with adherence to international agricultural standards, have helped India become the world’s third-largest exporter. This rise demonstrates India’s critical role in promoting sustainable agriculture.
India’s sugar exports have also grown significantly, with the country’s share of the global cane or beet sugar market increasing from 4.31 per cent in 2014 to 12.21 per cent in 2023. Exports totalled $3.72 billion in 2023, solidifying India’s status as the world’s second-largest sugar exporter. Strong production bases and beneficial agricultural policies have allowed India to meet rising demand, notably in Southeast Asia and Africa, strengthening its agricultural sector.
Electrical and Electronic Sector
The electronics manufacturing sector has advanced significantly, as seen by electrical transformers and related components exports, which increased from $1.08 billion in 2014 to $2.85 billion by 2023. India’s global market share climbed to 2.11 per cent in 2023, placing it tenth, up from seventeenth in 2014. Government programs like “Make in India” and production-linked incentive schemes have accelerated this progress, resulting in a strong manufacturing ecosystem.
The country’s strategic focus on electronics and semiconductors has produced tremendous outcomes. Exports increased from $0.23 billion in 2014 to $1.91 billion in 2023, reaching a global market share of 1.40% and securing ninth place, a remarkable improvement from 20th in 2014. This accomplishment demonstrates India’s rising involvement in the global semiconductor supply chain, bolstered by initiatives to improve domestic production and innovation.
Exports of parts for electric motors and generators have also increased significantly, reaching $1.15 billion in 2023 with a global share of 4.86 per cent, propelling India to sixth place internationally from 21 in 2014. This rise is consistent with the worldwide demand for renewable energy and electric vehicle components, establishing India as a prominent supplier in this transformative industry.
Rubber Pneumatic Tyres and other industrial products
India has achieved great progress in rubber pneumatic tyre exports, reaching $2.66 billion in 2023. Its global market share increased to 3.31 per cent, propelling it to eighth place, up from fourteenth in 2014. This expansion demonstrates India’s emphasis on quality, cost competitiveness, and the ability to service varied customers, particularly those in emerging economies. Similarly, exports of taps, valves, and similar industrial products were $2.12 billion in 2023, accounting for 2.16 per cent of the worldwide market and ranking India 10th. This success is largely due to advanced production methods and adherence to international standards.
Precious and Semi-Precious Stones
India has established itself as the world leader in precious and semi-precious stone exports, with a global share that has increased from 2.64 per cent in 2014 to an astonishing 36.53 per cent in 2023. Exports worth $1.52 billion demonstrate India’s centuries-old skill and use of modern technologies in gemstone processing.
Government initiatives to strengthen India’s export landscape
The Union government has launched a variety of measures and policies to boost exports, attract investment, and promote ease of doing business. A New Foreign Trade Policy was launched on March 31, 2023, and went into force on April 1, 2023. The policy’s primary strategy is based on four key elements.:
- Remission incentives.
- Export promotion through collaboration with exporters, states, districts, and Indian missions.
- Improving ease of doing business by lowering transaction costs and implementing e-initiatives.
- Prioritising emerging areas such as e-commerce, developing districts as export hubs, and streamlining the SCOMET (Special Chemicals Organisms Materials Equipment and Technologies) policy.
It focuses on growing industries such as dual-use high-end technology under SCOMET, increasing e-commerce exports, and encouraging collaboration between states and districts for export growth. The new Foreign Trade Policy (FTP) includes a one-time Amnesty Scheme to assist exporters in clearing old pending authorizations and restarting their operations. It also encourages the identification of new towns through the “Towns of Export Excellence Scheme” and recognizes exporters through the “Status Holder Scheme.” The Startup India initiative, designed to promote innovation and entrepreneurship, has built a robust ecosystem that includes 1.33 lakh DPIIT-recognized enterprises. Its action plan includes simplification, budgetary support, and industry-academic collaborations. Trade policy reforms have boosted India’s engagement in global supply networks. The Foreign Trade Policy, which focuses on cost competitiveness, trade facilitation, and developing sectors, provides a solid foundation for increasing global supply chain participation.
The Government of India unveiled the PM GatiShakti National Master Plan on October 13, 2021, using the PM GatiShakti NMP GIS-enabled portal to promote infrastructure and social sector development. PMGS adoption increases multimodal connectivity, enhances last-mile connectivity, and improves the ease of business and living. To supplement the PM GatiShakti NMP, the National Logistics Policy (NLP) was implemented on September 17, 2022, to lower logistics costs and increase logistics efficiency throughout the country. These strategies drive innovation and increase integration with global supply networks.
India’s export achievements reflect its expanding manufacturing capabilities, strategic initiatives, and dedication to innovation. From leading the global precious stone market to making inroads into innovative areas such as semiconductors and electrical components, India’s export journey demonstrates the country’s expanding economic might. The government’s forward-thinking measures, like the New Foreign Trade Policy, PLI Schemes, and many more, are important in increasing India’s global competitiveness. As India diversifies its export portfolio and expands its worldwide presence, it is on track to reach its goal of being a global economic powerhouse by 2047.
