India's progress as a significant global economic player is increasingly visible through its export performance across various sectors. Noteworthy advancements in industries such as petroleum oils, agrochemicals, electronics, and precious stones highlight the country's growing capacity to meet international demands.
Recent figures reveal a surge in export values. The petroleum sector, which encompasses petroleum oils and oils derived from bituminous minerals, has experienced substantial growth. Exports leaped from $60.84 billion in 2014 to $84.96 billion in 2023, with India now commanding a global market share of approximately 12.59%. With this growth, India has solidified its position as the second-largest global exporter of petroleum, driven by the country's advanced refining infrastructure and production capabilities alongside adherence to international standards.
The agrochemical sector has also demonstrated impressive advancement; by 2023, India's exports in this category, particularly insecticides, rodenticides, and fungicides, reached $4.32 billion. This success is reflected in a growing global market share, moving from 5.89% in 2014 to 10.85% in 2023, ranking India as the third-largest exporter globally. The sector's development has been bolstered by strategic investments in research and development and compliance with international agricultural standards, reinforcing India's role in supporting sustainable agricultural practices.
India's sugar exports have similarly seen significant gains. The country’s global market share for cane or beet sugar increased from 4.31% in 2014 to 12.21% in 2023, with exports valued at $3.72 billion. This achievement reinforces India’s status as the second-largest sugar exporter, influenced by strong production bases and favourable agricultural policies catering to rising demands, particularly from Southeast Asia and Africa.
In the realm of electronics manufacturing, exports of electrical transformers and associated components saw growth from $1.08 billion in 2014 to $2.85 billion in 2023. India’s global market share in this area rose to 2.11% in 2023, securing the 10th position worldwide, up from 17th in 2014. This development is closely linked to government initiatives like "Make in India" and production-linked incentive schemes, aiming to cultivate a robust manufacturing ecosystem.
The rubber pneumatic tyre sector also contributed to India's export success, achieving $2.66 billion in 2023 and rising to 3.31% market share globally. Similarly, industrial products such as taps and valves reached $2.12 billion in export value, capturing a 2.16% worldwide market share.
In an impressively related trajectory, India's strategic focus on electronics and semiconductors has yielded significant results. Exports skyrocketed from $0.23 billion in 2014 to $1.91 billion in 2023, pushing the country’s global market share to 1.40% and elevating its rank to 9th position, up from 20th previously. Ongoing efforts to enhance domestic manufacturing capabilities underpin this growth.
In terms of precious and semi-precious stones, India has carved out a leading position, with its global share jumping from 2.64% in 2014 to a staggering 36.53% in 2023, reflecting exports worth $1.52 billion. This growth is tied to India's long-standing craftsmanship coupled with advancements in gemstone processing technology.
To further bolster its export landscape, the Indian government has introduced various initiatives. A new Foreign Trade Policy, effective from April 1, 2023, lays out a framework focused on four pillars: incentivising remission for exports, enhancing collaboration among stakeholders, improving ease of doing business, and addressing emerging sectors, notably e-commerce.
Key support measures include the extensions of the Interest Equalization Scheme and the Trade Infrastructure for Export Scheme, aimed at reducing costs and improving the operational landscape for exporters. Notably, initiatives targeting the labour-intensive sectors, such as the Rebate of State and Central Levies and Taxes (RoSCTL) Scheme, have been crucial in recent years.
Additionally, the government is committed to enabling a business-friendly environment by digitizing interfaces with businesses. Over 42,000 compliances have been streamlined and hundreds of regulations decriminalised, contributing to India's rise in global indices related to ease of doing business and innovation.
The potential for Special Economic Zones (SEZs) in India is also notable, as these zones evolve from mere manufacturing hubs to dynamic environments fostering innovation, particularly within technology sectors such as fintech, blockchain, and artificial intelligence. With advantages like tax concessions and simplified regulatory compliance, SEZs are positioned to attract a new wave of tech startups seeking growth.
Economic ecosystems within these zones enable startups to benefit from key resources and streamlined processes, paving the way for innovative business models both in physical and virtual formats. The emergence of virtual SEZs serves as a fitting example of how these spaces are adapting to meet the demands of a rapidly changing technological landscape.
Overall, India's trajectory towards becoming a global economic powerhouse is marked by substantial export growth across various sectors, strategic government initiatives, and the potential offered by evolving Special Economic Zones in driving technological innovation. As the landscape continues to shift, India's commitment to enhancing its global trade standing is evident through these multifaceted approaches and initiatives.
Source: Noah Wire Services