Diversification of India’s goods exports is gaining momentum as products such as bananas, ghee, and solar photovoltaic (PV) modules emerge as significant contributors to country’s growing export portfolio. While traditional sectors like engineering goods, pharmaceuticals, gems and jewellery, and electronics continue to dominate, these new sectors are offering extra push needed to enhance India’s global export footprint.
Key Highlights of India’s Export Growth
| Sector/Product | Export Growth and Highlights |
| Bananas | Identified among 20 agri-products for export growth due to low global share. |
| Ghee | Increasing demand in traditional and emerging international markets. |
| Solar PV Modules | Ranked 6th globally in exports, with a 2.51% share in 2023, up from 0.4% in 2013. |
| Alcoholic Beverages | Whisky exports grew by 16% (April–October 2023). |
| Office Stationery | Registers and diaries gaining traction in Nicaragua, El Salvador, and Cyprus. |
| Spices (e.g., Black Pepper) | Growing demand in traditional and non-traditional markets alike. |
Bananas and Ghee: Agri-Exports on Rise
India’s focus on agricultural exports is paying dividends, with bananas and ghee emerging as noteworthy contributors. Bananas, now identified as one of 20 key products for export growth, have significant potential due to India’s current low global market share.
- Banana Export Markets: government is targeting markets like US, Malaysia, Canada, Russia, and Germany to increase India’s export share.
- Demand for Ghee: Ghee, a staple in Indian households, is finding acceptance in regions with a large Indian diaspora and beyond due to its nutritional and cultural significance.
government has also targeted other agricultural products for growth, such as watermelons, guavas, green chillies, and okra.
Solar PV Modules: A Clean Energy Export Success
India’s push toward clean energy exports has placed it among top six global exporters of solar PV modules.
- Rapid Growth: India’s global share in solar PV module exports rose from 0.4% in 2013 to 2.51% in 2023.
- Key Export Markets: Countries in EU, South Korea, and Japan have been significant buyers of Indian solar PV modules.
This success is a direct result of government’s emphasis on renewable energy production and incentives to boost manufacturing under initiatives like Production-Linked Incentive (PLI) Scheme.
Growth in Alcoholic Beverages and Office Stationery
Exports of alcoholic beverages, particularly whisky, have shown robust growth.
- Whisky Exports: Increased by 16% year-on-year from April to October 2023, with major markets in EU, US, and Far East.
- Demand Drivers: Growing interest in Indian single malt whisky, coupled with premiumization of alcohol products, has fueled this growth.
Meanwhile, niche products like office stationery are carving out new markets. Registers and diaries are gaining popularity in Nicaragua, El Salvador, and Cyprus, highlighting India’s ability to cater to varied consumer needs globally.
Emerging Markets and New Export Sectors
India is actively exploring new markets for traditional and non-traditional exports:
| Product/Sector | New Markets |
| Iron Ore | France, Saudi Arabia, Kenya. |
| Drugs and Pharmaceuticals | Latvia, Chad, Montenegro. |
| Engineering Goods | Greece, Croatia. |
| Cotton Yarn | Guatemala, Morocco. |
These new market explorations align with India’s target of increasing its share in global goods exports from 2.5% to 4-5% in coming years.
Overcoming Challenges
India faced a 4.83% decline in goods exports in November 2024, primarily due to reduced exports of petroleum products, gems and jewellery, iron ore, and fruits and vegetables. Despite this, government remains optimistic, targeting $800 billion in goods and services exports for FY25.
- Reasons for Decline: Geopolitical uncertainties and global demand fluctuations.
- Resilience Factors:
- Growth in electronics, engineering goods, and automotive exports, driven by PLI schemes.
- global adoption of China+1 strategy, which positions India as a key manufacturing alternative.
Role of Production-Linked Incentive Scheme
PLI scheme has been instrumental in driving growth across several export categories:
- Electronics: India has become a major supplier of mobile phones and components to global markets.
- Automotive Sector: Export of electric vehicles (EVs) and related components is on rise.
- Pharmaceuticals: Innovations in generic drugs and vaccines are solidifying India’s position as a global pharmaceutical hub.
Apparel and Spices: Steady Performers
India’s apparel exports continue to perform well, supported by growing global demand for Indian textiles. Similarly, exports of spices like black pepper are seeing growth in both traditional and emerging markets.
| Category | Highlights |
| Apparel | Sustained demand in key markets like US and Europe. |
| Spices | Black pepper leading growth in spice export segment. |
Targeting $800 Billion in Exports
government’s ambitious target of over $800 billion in goods and services exports for FY25 reflects India’s growing stature in global trade. Key contributors include:
- Engineering Goods: Bolstered by demand for precision machinery and automotive components.
- Pharmaceuticals: Continued innovation and affordability driving demand.
- Electronics: Expanding exports of consumer electronics and components.
Future Outlook
India’s efforts to diversify its export portfolio have positioned country as a competitive global player. With a focus on sustainability, innovation, and market diversification, India is well on its way to achieving its ambitious export targets.
| Key Goals for FY25 | Strategic Focus |
| $800 Billion Export Target | Strengthen traditional sectors and boost emerging categories. |
| Market Expansion | Penetrate untapped regions like Africa and Latin America. |
| PLI-Driven Growth | Enhance production capacity across priority sectors. |
Conclusion
India’s goods exports diversify with growth in bananas, ghee, and solar PV modules, showcasing country’s ability to adapt to evolving global demands. By focusing on emerging sectors, exploring new markets, and leveraging government incentives, India is carving out a stronger position in global trade. Despite challenges, future of Indian exports looks promising as country continues to innovate and diversify its export offerings.
Disclaimer
This article is based on publicly available data and government announcements. information presented aims to highlight diversification of India’s export portfolio and its potential impact on global market. Readers are advised to refer to official sources for detailed and updated information.
