Indian exports

Trend and future outlook

• Leading Export Items of IndiaIn the past ten years, Indian exports have grown at a rate of nearly 22%. Some commodities have enjoyed faster export growth than others. Some of India's main export items are cotton, textiles, jute goods, tea, coffee, cocoa products, rice, wheat, pickles, mango pulp, juices, jams, preserved vegetables etc. India exports its goods to some of the leading countries of the world such as UK, Belgium, USA, China, Russia etc.

• Export TrendsIf the Indian economy grows at the same pace, India would most definitely export goods worth US $500 billion by 2013 and may supersede the exports of other large developing countries like Brazil.The Way Ahead ( your subject)India needs the right mix of policy formulation sector focus and industry led initiatives to move up the value chain in the global export basket

Boosting exports

• There are few problems which need to be solved before India makes a mark for itself in the export sector.

• The Indian goods have to be of superior quality.• The packaging and branding should be such that countries

are interested to export from India.• At the same time India must look for potential market to

sell their goods. • The government should frame policies which gives boost

to the exports.

Trend

• Directional Change In ExportsIndia has seen massive directional change in the context of origin of demand for Indian products. Till 2001-02 North America and the EU markets shared nearly 21% and 23.2 % respectively of total exports and the remaining to the rest of the globe. By 2006-07, North America had a share of only 16% of the total exports and the EU's share was 21.2%.

Present support

• Tax exemptions• EOUs, SEZs• Establishment of Brand equity fund ( 5 billion)

Indian strength(manufacturing) • In recent years India has also achieved a significant turnaround in

manufacturing, particularly in low-cost, high-tech manufacturing or what has been described as “frugal engineering”.

• For instance India has now emerged as the largest global hub for the manufacture of small, fuel efficient cars, with the indigenously designed Nano changing the paradigm of automobile production. Godrej, the Indian company, is building a refrigerator that will cost less than a hundred dollars for the rural market in India. At the other end of the spectrum, India's Chandrayaan Moon Mission was undertaken at one-sixth the cost of similar Moon Missions elsewhere, while India has emerged as the most cost-effective producer of small nuclear power plants. Expansion and diversification of the manufacturing sector is a key priority for generating employment. Particular focus will be on creating conditions to facilitate the growth of small and medium enterprises, which account for over one third of the industrial sector and make a key contribution to job creation.

Indian exports • exports fell from $200.9 billion in 2008 to $165 billion in 2009. • India ranked 22nd in the world in terms of export volume.• • Being a country with a huge workforce, India has seen its trade being boosted

by the production of precious stones and metals. The various other export commodities that India exports are:

• Petroleum products• Machinery• Iron and steel• Chemicals• Vehicles• Apparel• India’s main export partners are:• UAE,US,Singapore,China

Exporting overview• The Government of India latest export policy for the exporters will help in

stabilizing the export growth levels attained in the 1st quarter of 2007-2008. • Ores and minerals exports grew moderately to 12.9% against 37.4% in 2005-

06. Similar trend was also observed in the exports of manufacturing sector. • The exports of manufactured goods from India grew moderately by 15% in

the first quarter of 2007-2008 as compared to 21.2% in the last fiscal year. High value commodities like engineering goods and rice registered very high growth rate in the 1st quarter of this fiscal against the same period last year.

• The overall exports suggests that the Indian exports grew considerably across all major exporting destinations. The Indian exports to Pakistan, UAE and Italy showed remarkable growth in the first quarter of the current fiscal year.