India’s Export Growth in 2023-24: A Comprehensive Analysis

Despite global economic uncertainties, India’s exports displayed resilience and growth in 2023-24, as evidenced by Commerce Ministry data. This performance underscores the country’s growing trade footprint, supported by the diversification of export destinations and the exploration of new markets.

Export Performance Highlights

1. Global Reach
   India exported goods and services to 115 out of 238 destinations globally, accounting for 46.5% of its export basket. Top destinations included:
   • United States (US)
   • United Arab Emirates (UAE)
   • Netherlands
   • China
   • United Kingdom (UK)
2. Growth in Key Markets
   • Exports to UAE rose by 12.71%, reaching USD 35.6 billion.
   • Singapore recorded a 20.19% increase, totaling USD 14.4 billion.
   • Exports to UK surged by 13.3%, while shipments to China grew by 8.7%.
   • Emerging markets such as Russia (up 35.41%), Romania (up 138.84%), and Albania (up 234.97%) demonstrated exponential growth, reflecting India’s efforts to diversify its trade portfolio.
3. Export Composition
   • Merchandise Exports: Declined by 3% to USD 437.1 billion.
   • Services Exports: Increased to USD 341.1 billion, up from USD 325.3 billion in 2022-23.
   • Overall Exports: Reached a record USD 778.2 billion, reflecting marginal growth of 0.23% year-on-year.
4. Commodities Driving Growth
   Among the 17 key sectors contributing to growth (48.4% of the export basket), notable performers included:
   • Engineering goods
   • Electronic products
   • Pharmaceuticals
   • Cotton yarn, fabrics, and handloom products
   However, significant declines were noted in:
   • Petroleum products (-13.66%)
   • Gems and jewelry (-13.83%)

Exploring New Markets

India’s trade growth in emerging regions highlights its strategy of market diversification:

• CIS Region: Russia, Uzbekistan, Ukraine, Armenia, and Tajikistan.
• Oceania: Australia, Timor Leste, Samoa, Vanuatu, and Solomon Islands.
• Europe: UK, Romania, Albania, Netherlands, and Greece.

Imports Overview

India imported from 229 countries, with a decline in imports reported from 124 nations. Key observations include:

• Major Source Nations: China, USA, Saudi Arabia, Indonesia, Russia, and Switzerland.
• Declines: Imports from UAE, Qatar, Kuwait, and Oman fell, reflecting opportunities for strengthening trade relations with GCC countries.

Future Outlook

India’s exports are expected to grow further, with the Exim Bank projecting a 12.3% increase in merchandise exports during April-June 2024, totaling USD 116.7 billion.
Key drivers for this growth include:

• Strong GDP fundamentals.
• Robust momentum in manufacturing and services sectors.
• Easing global monetary policies.

However, challenges such as geopolitical tensions, economic fragmentation, and uncertainties in advanced economies pose risks to sustained growth.

Conclusion

India’s export trajectory in 2023-24 illustrates its adaptability and resilience in a challenging global environment. By expanding into emerging markets and leveraging its strengths in services and high-demand commodities, India has bolstered its position as a significant player in global trade. Strategic efforts to address import declines, explore new opportunities, and mitigate risks will further enhance India’s trade prospects in the coming years.