The Simple Business Man

Export

India’s merchandise exports have seen a shift from traditional sectors to more diversified and high-value products

• Engineering Goods: Consistently leading the export chart, these accounted for approximately 25% of total merchandise exports by FY 2023–24
• Petroleum Products: Despite global price fluctuations, petroleum exports maintained a significant share, contributing around 14% in FY 2023–24
• Gems & Jewellery: This sector experienced a decline, with its share reducing to about 9% in FY 2023–24, down from higher percentages in previous years
• Pharmaceuticals: Benefiting from global demand, especially during the pandemic, pharma exports grew to represent nearly 6% of the export basket
• Electronic Goods: A rapidly growing segment, electronics exports increased by over 50% in FY 2022–23, reaching approximately 5% of total exports
• Agricultural Products :Including rice, spices, and cotton, these remained stable, contributing around 10% to the export mix In the services sector, exports surged, with IT and business services leading the way By FY 2023–24, services exports were estimated at $341.1 billion, marking a significant increase from previous years.

Import

India’s import profile reflects its energy needs and industrial growth

• Crude Oil & Petroleum Products Dominating the import basket, these accounted for about 27% of total imports, underscoring India’s energy dependence.
• Gold and Precious Stones Culturally significant and investment-driven, these imports constituted approximately 14% of the total.
• Electronic Items Including mobile phones and components, electronics made up around 10% of imports, reflecting domestic demand and manufacturing input.
• Machinery and Mechanical Appliances Essential for infrastructure and industrial projects, these imports held an 8% share.
• Organic Chemicals Vital for pharmaceuticals and agriculture, they represented about 4% of import .Major import partners included China (16% of total imports), the United States (6%), the United Arab Emirates (6%), Saudi Arabia (5%), and Switzerland (5%)
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Trends and Strategic Shift

India’s trade strategy has evolved with initiatives like the Production Linked Incentive (PLI) scheme, aiming to boost domestic manufacturing and reduce import dependence. The New Foreign Trade Policy (2023–28) focuses on increasing exports to $2 trillion by 2030, emphasizing sectors like pharmaceuticals, electronics, and high-tech manufacturing.

Additionally, India has signed significant trade agreements, such as the India-EFTA Trade and Economic Partnership Agreement in 2024, to enhance market access and diversify trade.

In summary, India’s export and import compositions over the past five years reflect a dynamic economy adapting to global trends, with a clear focus on diversification, self-reliance, and strategic international.