From the fifth position, India has now secured the third position as the largest global exporter and the recent surge in different sectors for export is boosting this growth as well. The current surge in India’s exports can be mainly attributed to growing export demand from four sectors: petroleum, agrochemicals, gemstones, and sugar. In the past five years, the share of the products of these sectors has been rising significantly taking the export demand higher.
Sector-wise Export Growth
Petroleum Sector: Exports in the petroleum sector were close to 85 billion in 2023 which pulled up the share of India’s exports in this sector to 12.59% which was earlier around 6.45% in 2018. India is the second largest exporter of petroleum as per 2023 data up from its fifth position in 2018 in this sector.
Sugar sector: India is known for its sugarcane produce and exports. India has been the second-largest sugar exporter in the world for a long and it also adds to global agricultural policy-making and more. India’s export of sugarcane or beet sugar has increased 4X to $3.72 billion. In 2018, this figure stood at $0.93 billion which showcases the significant growth in the industry. The global market share of India’s export of sugarcane stands at 12.21% as per 2023 data, while it was only at around 4.17% in 2018.
Gemstone Sector: In 2023, India’s export of precious stones, and gemstones surged to $1.52 billion up from its previous level of $0.26 billion in 2018. India’s share in global exports of gemstones surged from 16.27% five years ago to 36.53% in 2023. Currently, India is leading in the global exports of precious stones.
Agrochemical Sector: The fourth sector or the fourth pillar of the recent surge in India’s exports is agrochemical product’s demand. From a global market share of 8.52% in 2018, in 2023, India had a market share of 10.85%, which showcases a significant rise in the market share. The value of exports of agrochemicals reached $4.32 billion during the same year. The Officials commented that India’s following environmental standards, and innovating agro products are the main reasons for this surge in demand in global markets.
Emerging Sectors
Rubber/Tyres Sector: In the rubber pneumatic tyres segment, the exports grew to $2.66 billion in 2023 from $1.82 billion in 2018. Now India’s position in this sector as an exporter is 8th up from 13th five years back.
Semiconductor Sector: Exports of semiconductors from India are also picking up along with the export of photosensitive devices. In 2023, exports from this sector were recorded at $1.91 billion, which was around just $0.16 billion five years back in 2018. Currently, India has a 1.4% market share in the export of semiconductors and ranks 9th globally with a potential to lead the global markets soon.
Conclusion
India’s rising export indicates towards the rising demand for Indian goods and services. Rising exports can boost the economy significantly and businesses. While the above sectors witnessed a massive surge in exports, other sectors also witnessed a surge in exports. All these together indicate towards growing Indian economy and export demand.
Source: CNBC TV18
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