India is the world’s fastest growing economy. Indian exports of both merchandise and services have witnessed an exponential growth of 13.79% in the year 2018-19. Kudos to India!
As per the current report of the Federation of Indian export organisations, the contribution of export to the country’s GDP is about 18% to 19%. Although the global factors like rise in crude oil prices, strengthening of USA Dollar and US-China trade war has affected the Indian exports.
Because of initiatives like Make in India where the primary goal is to brand India as a global manufacturing hub. India has managed to ride the roller coaster well. Dealing mainly in capital intensive exports, India is into exports of Petroleum products, Organic and inorganic chemicals, Electronic goods, Plastic and Linoleum.
Not only this but the cabinet being lenient with the agricultural export policy, the Agri exports are estimated to grow from $37 billion to $60 billion by the end of the year 2022. India is firmly following the mantra of Sky is the limit. Along with this, the basmati rice industry is on an expedition to have its highest ever exports in FY 2019. The Indian government has also equipped a rupee payment mechanism, to kick in with ease for trade with Iran, our largest importer of Basmati rice.
Even the Indian pharmaceutical industry has played a crucial role in the country’s exports. It has managed to raise its exports by $11 billion in the FY 2018-19. The USA is the leading trade partner in pharmaceuticals accounting for about 1/3rd of India’s exports.
India is centring on bilateral trade, with its prime focus simply on being together in an uncertain world. India has managed to sign 80 plus bilateral trade agreements.
India’s top 5 markets for exports as per the World Bank report
United Arab Emirates
Hong Kong, China
India’s top 5 export products as per World Bank data
Art of jewellery
Semi-milled and wholly milled rice
After marking down the highest ever exports to China this fiscal year, India is now making efforts to achieve greater market penetration in its exports.
Indian export growth is essential to seize the opportunity in the global markets. Additionally, there has been an exponential growth in the Logistics sector as well.
The logistics sector, backbone of trade and commerce across the globe is likely to grow to $215 billion worth. And by adding it to the Harmonised Master list of Infrastructure India has already taken a few steps closer.
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