India has a total export worth of $ 322,291,568.43 and an import worth for a sum of $ 617,945,603.08. The exports from India plunge at 36.47% every year. The country reached an export rate of $19.05 billion in 2020. India is involved in the export of gems. Jewellery, petroleum products, engineering goods, electronic goods, organic and inorganic chemical. In the initial two months of the fiscal year 2020-2021, the exports in India plummeted to 47.54% to reach a worth of $29.41 billion.
In recent years India also trudged in the exporting of pearls, precious and semi-precious stones and jewellery. Along with these India also has ventured into the export of mineral fuels, oils, waxes, bituminous substance, vehicles. Nuclear reactors, boilers, machinery, mechanical appliances. Pharmaceutical products and organic chemicals. India’s main export partners are U.S.A, China, Singapore, United Arab Emirates, Hong Kong, China, Singapore and the United Kingdom. The Indian export trade has grown by 0.87% over the last few years I comparison to the world’s growth 3.50%. The export business of India contributes $ 204,955,578,850 to the country’s GDP. The import trade business contributes $124,181,614,510 to the country’s GDP. Indian export of goods and services accounts for 19.74% of the GDP while the interview 23.64% of the GDP.
The world trade has expanded over the past decades, and a significant contributing factor to the growth of the export trade is the periodic rounds of successful multilateral trade negotiations. The multilateral trade negotiations have led to the reduction in the tariffs on goods crossing a national border. Over time India has developed good relations with the various countries of the world with the motive of boosting the external trade. The Indian government has extended the Foreign Trade Policy of India to focus more on substantially increasing the country’s share of global merchandise trade. The government of India has taken several steps towards boosting business with the rest of the world by adopting policies and procedures. The trade policy helps in increasing and facilitating both exports and imports with the other countries. Even to facilitate the rise of the trade activities, the Department of Commerce, Government of India has developed even an online portal.
What is the scope of export in India
The foreign trade in India includes all imports and exports to and from India. At the Central Government level, the export trade is administered by the Ministry of Commerce and Industry. The foreign trade accounts for 48.8% of India’s GDP. International trade export in India started in India post-independence. India is the eighth largest exporter of commercial services in the world. The Indian export trade accounts for 3.4% of the global business in services, and it has recorded a 5.7% growth in services trade. India exports 7500 commodities to about 190 countries and imports around 6000 products from 140 countries. As per government survey, the Indian export business is worth for a sum of $318.2 billion and the import worth of the commodities is worth for an amount of $462.9 billion. According to the government of India’s economic survey, there are five primary states which account for 70% of India’s total exports. The rules of India which excel in the export business are Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana. The survey had also found a high correlation between the sate’s Gross State Domestic Product per export share. Kerala is considered as a significant outlier because remittances heavily influence the state’s GDSP per capita. The survey also found that the largest firms in India contributed to a smaller percentage of exports when compared to other countries like Brazil, Germany, Mexico and the United States. He top 1% of India’s companies account for a total of 38% of total exports.
The primary export trade partners of India
India is known to trade its commodities around the world. However, the leading and most significant trading partners of the total value trade are United Arab Emirates, China, United States, Saudi Arabia, Switzerland, Singapore, Germany, Hong Kong, Indonesia, Iraq, Russia, Japan, Israel and it’s neighbours. India is considered as the biggest exporter of Pharmaceuticals and food products. Here is the countrywide Indian export data as per the survey of 2020.
Countrywise export data of India, 2020
| India Exports by Country | Last | Previous(INR Billion) | Year |
| United States | 276.45 | 335.21 | Mar/20 |
| United Arab Emirates | 123.76 | 210.48 | Mar/20 |
| China | 79.20 | 79.99 | Mar/20 |
| Hong Kong | 76.85 | 44.26 | Mar/20 |
| Singapore | 45.22 | 48.71 | Mar/20 |
| Germany | 42.01 | 51.38 | Mar/20 |
| Saudi Arabia | 40.73 | 48.55 | Mar/20 |
| Netherlands | 39.95 | 53.60 | Mar/20 |
| Nepal | 35.61 | 43.31 | Mar/20 |
| Malaysia | 29.72 | 45.19 | Mar/20 |
| Italy | 29.56 | 35.96 | Mar/20 |
| Belgium | 26.03 | 31.02 | Mar/20 |
| France | 24.35 | 31.41 | Mar/20 |
| South Africa | 24.13 | 25.94 | Mar/20 |
| Iran | 22.99 | 18.95 | Mar/20 |
| Japan | 22.28 | 28.68 | Mar/20 |
| Indonesia | 21.87 | 54.73 | Mar/20 |
| Thailand | 20.95 | 26.95 | Mar/20 |
| Spain | 20.22 | 23.62 | Mar/20 |
| Nigeria | 24.35 | 31.41 | Mar/20 |
Source: Trading Economics
Primary export promotion councils of India
India is involved in the export of various commodities which include food grains, whole spices, industrial products, chemicals, pharmaceuticals, apparels, cosmetics and many more. For the shipping of the specialities, various export promotion councils of India have been formulated which look after the trade of the products. The councils also work towards the establishment of trade relations with the other countries. Here is a list of the first export promotion councils of India.
Apparel Export Promotion Council
Apparel House, Institutional Area Sector-44,
Gurgaon-122003, Haryana
Phone: 0124-2708000-3
Fax : 0124-2708004
Basic Chemicals, Pharmaceuticals and Cosmetics
Export Promotion Council (CHEMEXCIL)
Jhansi Castle, 4th floor,
7-Cooperage Road, Mumbai – 400039
Tel. : (91)22-2021288/2021330/2026549
Fax : (91)22-2026684
Carpet Export Promotion Council
2nd Floor, Rajiv Gandhi Handicrafts Bhawan,
Baba Kharak Singh Marg, New Delhi – 110001, INDIA
Tele: +91-11-23364716
Fax: +91-11-23364717
Email: [email protected]
Cashew Export Promotion Council
Cashew Bhavan, Mundakkal, Kollam – 691001, Kerala, India
Tel.: 0474 2742704/2761003
Fax: 0474 2742704
Email: cepc@cashewìndia.org, cchi.kollam@cashewìndìa.org
Chemicals and Allied Products Export Promotion
Council (CAPEXIL)
“Vanijya Bhavan”, International Trade Facilitation Center,
3rd Floor, 1/1 Wood Street, Kolkata-700016
Tel. : (91)-33-22890524/0525
Fax : (91)33-22891724
E-mail: [email protected]
Council for Leather Exports
3rd floor, CMDA Tower-2 Gandhi Irwin Bridge Road,
Egmore, Chennai – 600008
Tel. : (91)44-28594367-71(5 lines)
Fax : (91)44-28594363/64
E-Mail : [email protected]
Electronics and Computer Software Export Promotion Council
3rd Floor, PHD House
Opp. Asiad Village
New Delhi 110016
Tel:+ 91 11 26965103 26964463 47480000
Fax: +91 11 26853412
Email : [email protected]
Engineering Export Promotion Council, India (EEPC India)
Vanijya Bhawan, 1st Floor, International Trade Facilitation Centre,
1/1, Wood Street, Kolkata – 700016
Tel. : 91-33-22890651/52
Fax : 91-33-22890654
E-mail : [email protected]
Export Promotion Council for EOUs & SEZ Units
8G,8th Floor, Hansalaya Bldg.,
15, Barakhamba Road,
New Delhi – 110001
Tel. : (91)11-23329766-69
Fax : (91)11-23329770
E-Mail : [email protected], [email protected] , [email protected]
Export Promotion Council for Handicrafts
EPCH House, Pocket 6&7, Sector ‘C’,
LSC, Vasant Kunj, New Delhi-110070
Tel: +91-11+26135256
Fax: +91-11-26135518 & 19
Email: [email protected]
Gem and Jewellery Export Promotion Council
Office No. AW 1010, Tower A, G Block,
Bharat Diamond Bourse, Next to ICICI Bank,
Bandra-Kurla Complex, Bandra – East,
Mumbai – 400 051, India
Tel :91-22-26544600
Fax :91-22-26524764
Email :[email protected]
Indian Oil Seeds & Produce Export Promotion Council
78-79, Baja] Bhavan, Nariman Point,
Mumbai- 400 021
Tel.: (91) 22 22023225/22029295
Fax: (91) 22 22029236
Email: [email protected]
Jute Products Development & Export Promotion Council
Chatterjee International, 5th Floor, Flat No, 8, 33A, J.N.Road
Kolkata, West Bengal, 700071, India
Email: [email protected]
Phone: 033 65006816
Fax: 033-22884418
Mobile: 09230616887 (O)
Pharmaceutical Export Promotion Council
101, Aditya Trade Center,
Ameerpet, Hyderabad – 500038
Tel : (91)40-23735462/66
Fax : (91)40-23735464
E-Mail : [email protected]
Powerloom Development & Export Promotion Council
GC-2, Ground Floor, Gundecha Onclave,
Kherani Road, Saki Naka, Andheri (East),
Mumbai – 400 072 (INDIA)
Tel. +91 (22) 67254510 / 67254497 / 67254498
Fax +91 (22) 67254526
Email : [email protected]
Project Exports Promotion Council of India (PEPC)
1112, Arunachal Building(11th Floor)
19, Barakhamba Road
New Delhi – 110001
TEL. : 91-11-41514673, 41514284
E-Mail : [email protected]
Services Export Promotion Council
509-518, 5th Floor, APPAREL House, Sector-44,
Institutional Area, Gurgaon-122003
Tel. : (91)124-2587666 to 68
Fax : (91)124-2587666
E-Mail : [email protected]
Shellac Export Promotion Council
“Vanijya Bhawan” International Trade Facilitation Centre,
1/1 Wood Street, 2nd Floor, Kolkata – 700016
Tel. : (91)33-22834417,22834697, 22834698
Fax : (91)33-22834699
Sports Goods Export Promotion Council
1-E/6, Swami Ram Tirth Nagar,
Jhandewalan Extn. New Delhi – 100055
Tel. : (91)11-23525695-23516183
Fax : (91)11-23632147
E-Mail : [email protected]
The Cotton Textiles Export Promotion Council of India
Engineering Centre, 5th Floor
9 Mathew Road, Mumbai 400004
Telephone : (022) 2363 2910 to 13
Fax : (022) 2363 2914
Email : [email protected]
The Handloom Export Promotion Council
34, Cathedral Garden Road,
Nungambakkam, Chennai –600034.
Tel : +91 44 28278879 / 6043
Fax : +91 44 28271761
E-Mail : [email protected]
The Indian Silk Export Promotion Council
B-1, Extn/A-39,
Mohan Cooperative industrial Estate,
Mathura Road, New Delhi-110044
Email: [email protected]
Telefax: 011-40571366
The Plastics Export Promotion Council
Crystal Tower, Gundivali Road No. 3, Opp Sir M.V.Road,
Andheri(East), Mumbai-400 069
Tel. : (91)22-26833951/52
Fax : (91)22-26833953/4057
E-Mail : [email protected]
The Synthetic & Rayon Textiles Export Promotion Council
Resham Bhavan, 78,
Veer Nariman Road,
Mumbai-400020
Phone: (+91-22) 22048797, 22048690
Fax: (+91-22) 2204 8358 / 2281 0091
Email: [email protected]; [email protected]
Wool & Woollens Export Promotion Council
Flat No. 614, Indra Prakash Building,
21, Barakhamba Road , New Delhi -110001
Tel: 011-23315512, 23315205
Fax: 011-23730182
Email: [email protected]
Wool Industry Export Promotion Council
Churchgate Chambers, 7th Floor, 5,
New Marine Lines, Mumbai – 400020
Tel.No.0091 22-22624372
Fax No.0091 22 22624675
E-mail:[email protected]
Source: https://www.indiantradeportal.in/
What are India’s main export?
Ever since ages, India has been into the export business. Right from food grains to industrial goods, India is involved in the export of various commodities. The country is one of the so-called BRIC economics and is recognized as the major emerging national economies. India currently is the largest exporter of various commodities and also the leading contributor to the national economy. Since the past 15 years, the country ha yielded a positive trade balance of $340 million at the beginning. The main exports of Indian with their pricing is as follows:
- Refined Petroleum ($30.2B)
- Diamonds ($26.5B)
- Packaged medicaments ($13.2B)
- Jewelry {$8.66B)
- Rice ($7.05B)
Refined Petroleum as per survey accounts for the largest bulk of India’s main exports. The petroleum exports contribute 10.3% to the country’s total exports and are strictly followed in line by diamonds which accounts for 9.1% of the trade.
The other export commodities of India as per the Department of Commerce, Government of India are as follows:
Primary export commodities of India, 2020
| S.No. | HSCode | Products | Value(Million USD) |
| 1. | 71 | Minerals | 43,623.16 |
| 2. | 27 | Refined petroleum | 32,435.65 |
| 3. | 87 | Automobiles | 14,950.08 |
| 4. | 84 | Machinery and mechanical appliances | 14,100.58 |
| 5. | 29 | Organic chemicals | 11,688.52 |
| 6. | 30 | Pharmaceutical products | 12,930.48 |
| 7. | 72 | Iron and steel | 8,682.99 |
| 8. | 62 | Textiles | 9,164.61 |
| 9. | 61 | Knit apparel and accessories | 8,223.74 |
| 10. | 85 | Electrical machinery | 8,232.02 |
| 11. | 10 | Cereal | 6,012.95 |
| 12. | 03 | Seafood | 5,501.05 |
| 13. | 73 | Iron and Steel articles | 5,916.09 |
| 14. | 52 | Cotton. | 6,611.05 |
| 15. | 39 | Plastics | 5,294.11 |
| 16. | 89 | Ships and marine equipment | 4,524.25 |
| 17. 18. 19. 20. | 63 76 02 38 | Clothing Aluminium Meat Miscellaneous Chemical products. | 4,705.34 3,223.05 4,037.61 3,249.08 |
Source: Trade exports
Indian export trade at a glance
India has a large population, and to feed the growing mouths the country needs revenue. Half of the revenue generated in the country is through the export business. With the changing demand of the market, India tends to go beyond trade relationships to strategic partnerships, commerce and industry minister. As per the current norms, trade is about strategic partnerships. To keep up with the changing rules, the country needs to find new edifice of strategic relationships. Keeping note of the unprecedented situations of the world trade India has developed a strategy to increase exports through the geography-specific and product-specific matrix to increase its market share. The country has made use of the changed norms in South Africa, Latin America and the Middle East. India has also started collaborating with West Asia for food products while has also entered into a partnership with Russia to boost the diamond business.
Partnership with Russia has proved to be beneficial for India as it has given the company access to raw materials. The country is currently working towards a partnership with the Middle East to create a supply chain wherein India can invest along with the Middle East’s investment to gain export benefits. Further, the ministry of commerce has also designed an action plan to increase foreign direct investment inflow from $100 billion from $61 billion. To boost the export business of India, the ministry has also removed the sectoral restrictions.
Export service boost
As per reports, India has set a target for its service sector t have a 4.2% share in the global services exports by 2022. The current share rate of the Indian export service in the worldwide market is 3.3%. The percentage of services in gross value added, which currently is 53% is expected to witness an upsurge and reach a rate of 60% by 2022. The estimated share rate of the construction export service is also expected to rise to 67% by 2022, which is ^% higher than the current ratio, which is 61%. The ministry of commerce and industry has identified 12 champion sectors who have proved to be leaders in the export business. These 12 champions provide funding for a sum of Rs 5,000 crore. The major contributing areas of export business identified by the government are as follows:
- Information technology & information technology-enabled services
- Tourism and hospitality
- Medical value travel
- Transport and logistics
- Accounting and finance
- Audio visual
- Legal
- Communication
- Construction
- Engineering
- Education
- Environmental services
- Financial services
The ministry has said that these sectors are independent ones are expected to grow devoid of the manufacturing and agricultural process. The department stated that services become only under two mainstream growth engines which are agriculture and construction. However, these independent sectors are well diversified and would have qualitative growth shortly.
If the wordings of the ministry is to be believed, then the country is expected to grow its economy from $2.5 trillion to $5 trillion in the future. The government of India has undertaken several initiatives to increase the export and import business of India. Government efforts, planning, and strategy are directly contributing to the overall growth in a considerable way, and the world is taking note that India is a real economic powerhouse. Government benefits include export schemes, financial assistance, and other state-mandated benefits that the Government of India provides to its economy.
Strategies to boost the export trade in india
India is the largest world economies, and the government of the country has created economic platforms that encourage thee export trade. The state not just provides a platform to the well-recognized export houses but also provides a platform to the startups to establish their forte. The strategies developed by the government have aided in not just promotion of the export trade instead also has ensured the smooth functioning of the market. Here is a list of the significant successful strategies launched by the government:
1. Creation of duty drawback schemes
As per the survey, the government, along with traditional measures, has revived the duty drawback scheme due to its immense popularity. The duty drawback schemes can be improved by opting for the following actions:
Making them accessible also to indirect exporters and extending them to imported inputs used in the production of exported final productsEliminating duty pre-payment for exporting firms to reduce credit requirements.
2. Increasing the availability of credit
The availability of short and long term credit becomes a necessity for the exporters. The process is decisive for the small and medium enterprises who require credit constraints more than large firms. The SMEs make the majority of the export firms in the developing countries, and thus improvement of the sector for generation of better revenue becomes crucial.
3. Simplifying regulation
The need of the hour is that the government should simplify the regulation related to exports and improve lengthy bureaucracy procedures for the new exporters. The government also needs to improve the information collection and dissemination about foreign markets and cater to the requirements of the export business. Stringent action needs to be taken to look after the product standards and also look after the technical requirements imposed on the export to the global market.
4. Combining short term and long term export growth policies
The export growth requires a combination of both short and long term policies. They are exploiting the complementarity between EPPs and other domestic policies. Looking after the internal systems which are aimed at enhancing the productivity and technical aspect has become crucial. Also, for the growth of the export segment policy design, implementation, enforcement and monitoring of the policies are required. The policy mix needs to make based on the capabilities available to the national government, sub-national government and the domestic agencies. Alongside practical criteria needs to found which proves to be the deciding factor for the policy design. Adopting to the set standards would minimize resource waste and also reduce the danger of fostering powerful domestic interest groups and rent-seeking activities.
5. Collaboration between the government and private sectors
The private and government sector have forever competed against each other for business growth. However, to increase the trade of India, the government and the private sectors need to collaborate and work for hand in hand to yield a better export ratio.
6. The analysis report of requirement
For the successful growth of the export industry, a careful analysis of the requirements and specifications of the local, domestic, small, medium and large export firms and houses needs to be done. The report would provide an indication of which policy is coming to aid and which needs to change. The domestic policies tend to affect export performance either directly or through set of policy instruments with direct influence on foreign trade and indirectly through a set of policy measures which include monetary gains, fiscal aspects, investments and exchange rates.
Are you planning to start with the export business? Looking to collaborate with exporters in India? Reach out to us at exportsconnect.com by filling in the form. We have a list of the leading exporters in India that you can collaborate with for business expansion.
References
https://www.icontainers.com/us/2020/01/07/what-are-indias-main-exports/
https://tradingeconomics.com/india/exports
https://en.wikipedia.org/wiki/List_of_exports_of_India
https://www.indiantradeportal.in/
http://mospi.nic.in/trade-statistics
https://wits.worldbank.org/countrysnapshot/en/IND
Do Check out http://blog.exportsconnect.com/india-import-data-statistics/ for India Import Data and Statistics 2020.
