India is steadily advancing its position as a global economic leader, marked by impressive achievements in the export sector. The country has shown notable progress in diverse industries, including petroleum oils, agrochemicals, semiconductors, and precious stones. This success stems from leveraging advanced technology, innovative practices, and competitive manufacturing to meet international demands. Backed by robust government policies, India is expanding its export base and establishing itself as a trusted global supplier.
In 2023, India achieved remarkable milestones in exports. It became the second-largest global exporter of petroleum oils, with exports rising from $60.84 billion in 2014 to $84.96 billion, capturing a 12.59% share of the global market. Agrochemical exports, particularly insecticides, rodenticides, and fungicides, reached $4.32 billion, positioning India as the third-largest exporter in this category. Sugar exports also surged, accounting for a 12.21% global market share and making India the second-largest global exporter.
India’s electronics manufacturing has seen significant growth, with exports of electrical transformers and components rising from $1.08 billion in 2014 to $2.85 billion in 2023. Exports of rubber pneumatic tyres increased from $1.65 billion to $2.66 billion, ranking India eighth globally. Exports of parts for electric motors and generators reached $1.15 billion, earning the country the sixth spot in this sector.
The focus on semiconductors has paid off, with exports growing from $0.23 billion in 2014 to $1.91 billion in 2023. In the realm of precious and semi-precious stones, India commands 36.53% of the global market, with exports valued at $1.52 billion.
Government Efforts to Bolster Exports The Indian government has implemented several initiatives to boost exports. The 2023 Foreign Trade Policy, launched in April, aims to reduce transaction costs, encourage collaboration between exporters and states, and emphasize emerging sectors like e-commerce. The “Towns of Export Excellence Scheme” identifies new export hubs, while exporters benefit from incentive schemes like the Interest Equalization Scheme for export credits, extended until August 2024.
Infrastructure development has been prioritized through programs like the Trade Infrastructure for Export Scheme (TIES) and the Market Access Initiative (MAI), providing financial assistance to exporters. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme now includes additional sectors such as pharmaceuticals and chemicals.
Ease of doing business has significantly improved with reforms like the Goods and Services Tax (GST), corporate tax adjustments, and the introduction of the National Single Window System (NSWS). Over 42,000 compliance requirements have been simplified, and 3,800 provisions have been decriminalized to enhance business operations.
For labor-intensive sectors, the Rebate of State and Central Levies and Taxes (RoSCTL) scheme, active since 2019, has supported exporters. The government’s push for a digital export ecosystem has improved access to information and financial resources for small and medium enterprises.
Vision for the Future India’s growth blueprint for 2047 focuses on innovation, global competitiveness, and deeper integration into global supply chains. Between 2014 and 2019, India’s World Bank Doing Business ranking improved from 142nd to 63rd. It also climbed from 81st in 2015 to 40th in the 2023 Global Innovation Index.
Infrastructure development is a cornerstone of this vision. The PM GatiShakti National Master Plan aims to enhance multimodal connectivity, while the National Logistics Policy, launched in 2022, seeks to reduce logistics costs and improve efficiency.
India is also fostering e-commerce exports, with a target of $100 billion by 2030. Measures to streamline logistics and lower transaction costs are helping exporters, especially in Tier 2 and Tier 3 cities. New export hubs like Bharat Mart in Dubai aim to connect Indian micro, small, and medium enterprises (MSMEs) with global markets.
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