Having set an ambitious goal toin FY22, India is firming up plans to bolster its exports of scores of essential products where its share in the global market has traditionally remained paltry.
Mechanical machinery, electronics, medical and surgical equipment, sports goods, toys, and certain farm commodities are among severalits exports, according to an analysis by exporters’ body FIEO.
For instance, in the electrical and electronics segments,for only 0.5% of the global supplies of $2,900 billion in 2020.
Similarly, while global imports of mechanical machinery and parts stood at $2,142 billion in 2020, India’s exports were just $18 billion, with a share of under 1%.
Of course, India’s exports have risen faster than the global average in capital and consumer goods in the, and a low base aided it. FIEO’s analysis is part of its broader exercise to devise a new strategy to improve exports.
Significantly, the rollout of production-linked incentive schemes for electronics productswill help bolster our manufacturing base, which will ultimately help outbound shipments, FIEO reckons.
In medical & surgical equipment, against global imports of nearly $592 billion in 2020, India’s exports were only to the tune of $3.1 billion. India’s exports stood at just $380 million in sports goods and toys, against the global supplies of $120 billion in 2020.
India’s exports have trailed the global average in thethrough 2020. While global imports grew at a compounded annual (CAGR) of 3% during 2016-2020, India’s exports rose at only 2%. Of course, the outbreak of the pandemic and consequent more adversely than most others in 2020.
However, a concern is that exports from labor-intensive sectors are losing their. In the gems & jewelry sector, global imports in the through 2020 grew by a CAGR of 5%, while India’s exports contracted by a CAGR of 12%.
Similarly, while the woven garment imports worldwide remained static during 2016-2020, India’s supplies shrank by a CAGR of 8%. In the leather footwear sector, in which global imports grew by a CAGR of 1% during 2016-2020, the country’s exports contracted at a CAGR of 7%.
However, in certain farm commodities, such as coffee, tea, spices, preparation of meat & fish, and preparation of foods & vegetables, India’s CAGR in exports has been more than double that of global imports between 2016 and 2020. Here the country needs to build upon what it has achieved in.