The economic potential of India’s export goods
India’s export industry has been a vital pillar of its economy, driving growth and fostering international trade relations. In this blog, we delve into the top export statistics of India and analyze the trends to uncover the top exported goods. By understanding these dynamics, we can identify areas of potential and the support needed to fully harness India’s export prowess.
The economic potential of India's Export Industry
India has a large and growing economy, with a population of over 1.3 billion people. This provides a large domestic market for Indian goods and services. However, India also has a significant export potential.
The World Bank estimates that India’s export potential is $1 trillion. This means that India could export three times more goods and services than it does today.
There are a number of factors that are driving India’s export potential. Some of these include:
- A young and growing workforce
- A rising middle class
- A favorable investment climate
- A strong focus on innovation
- A strategic location (connecting South-East Asia & the Middle-East via land and sea)
A glimpse into India’s Export numbers
India’s Top Export statistics
The top export statistics of India show that Gujarat is the largest exporting state, followed by Maharashtra and Tamil Nadu.
Gujarat accounted for 29.68% of India’s exports in the current financial year (FY 2023-24), Maharashtra accounted for 15.85%, and Tamil Nadu accounted for 9.46%.
The other top exporting states of India are:
- Karnataka (7.15%)
- Andhra Pradesh (4.83%)
- Uttar Pradesh (4.78%)
- Haryana (4.11%)
- Telangana (2.94%)
- Odisha (2.88%)
- West Bengal (2.68%)
India’s Top Export Trends
The top export trends of India show that Gujarat, Maharashtra, and Tamil Nadu have been consistently growing their exports over the past few years.
Gujarat‘s export growth is fueled by its expertise in petrochemicals, textiles, and gems and jewelry.
Maharashtra, driven by its robust manufacturing base, showcases a consistent export growth, particularly in the automotive and pharmaceutical sectors.
Tamil Nadu, known for its strong manufacturing and IT sectors, excels in exporting textiles, leather goods, and automotive components.
Karnataka, West Bengal, Andhra Pradesh, Odisha, and Telangana have also been growing their exports, but at a comparatively slower pace.
The top export trends of India show that the export-led growth is not evenly distributed across the country. Gujarat, Maharashtra, and Tamil Nadu are the major drivers of this trend, showcasing their prowess in various industries.
Other major exported goods of India include:
- Textiles
- Chemicals
- Agricultural products
- Leather and leather products
- Machinery and equipment
Support Required to Reach Full Export Potential
India has the potential to export $1 trillion worth of goods and services. However, in order to reach this potential, India needs to address a number of challenges.
Some of these challenges include:
- High logistics costs
- Inadequate infrastructure
- Lack of skilled labor
- Weak intellectual property protection
- Regulatory environment
India needs to address these challenges to reach its full export potential.
Yet, India’s export industry has made remarkable strides, positioning the country as a global player in international trade in the last couple of years, all the while, recovering from a global pandemic and geo-political instabilities such as the Russia-Ukraine war.
India’s top export statistics highlight the diverse contributions of various regions, with Gujarat, Maharashtra, and Tamil Nadu leading the charge. By focusing on the top exported goods. India can continue to harness its economic potential and solidify its position as an export powerhouse. With the right support and investments, India is poised to unlock even greater opportunities and contribute significantly to the global trade landscape.