• India's total exports have increased by 67% over the past decade, reaching $778 billion in FY2023-24.
• This growth propelled India from the 20th to the 17th position in global rankings.
• The first quarter of the current financial year saw India's trade performance demonstrating stability and moderate growth.
• Despite a growing trade imbalance, India's strategic initiatives and increasing global demand for its products position it well for future growth.

India's economic landscape has undergone a significant transformation over the past decade. The country's total exports have soared by an impressive 67%, reaching approximately $778 billion in FY2023-24, up from $466 billion in FY2013-14. This surge in exports is a testament to the increasing global demand for Indian products across various categories.

The country's share in world merchandise exports also saw an improvement, rising from 1.66% to 1.81%. This positive shift propelled India from the 20th to the 17th position in global rankings, as revealed by Union Minister of Commerce and Industry, Piyush Goyal, in response to a Parliamentary query.

This remarkable growth in exports was not a mere stroke of luck but the result of several strategic initiatives implemented by the government to sustain and accelerate export growth.

India's Trade Performance and Global Rankings

The first quarter of the current financial year saw India's trade performance demonstrating stability and moderate growth, as per a report by NITI Aayog Trade Watch. The report further highlighted that India's total trade in H1 2024 experienced a 5.45% year-on-year increase, reaching $576 billion compared to 2023.

Merchandise imports also showed consistent growth, with Q1 FY25 exports rising by 5.95% to $110 billion and imports increasing by 8.40% to $173 billion. However, this led to a growing trade imbalance. In Q1 FY25, Indian iron and steel exports experienced a massive decline of 33%, primarily due to weak domestic demand and excess capacity in China, resulting in an oversupply of steel in the global markets.

Despite this, export growth to FTA partners was notably strong at 12%, while import growth from these partners was 10.29%. Geographically, North America accounted for 21% of India's exports, followed by the EU at 18.61%. Imports were largely from Northeast Asia, West Asia (GCC), and ASEAN, making up 51% of total imports.

Strategic Focus and Future Outlook

India's strategic focus on electronics and semiconductors has yielded impressive results, with the country maintaining or improving its rank among the top 10 global suppliers. Quality assurance remains a priority, with the Bureau of Indian Standards (BIS) enforcing Quality Control Orders (QCOs) to ensure high standards for Indian products and curb substandard imports.

The government's schemes like the Remission of Duties and Taxes on Exported Products (RoDTEP) and the Rebate of State and Central Levies and Taxes (RoSCTL) further support export-driven industries, particularly labour-intensive sectors. Looking to the future, economists are urging industry leaders to address underlying challenges, ensuring India's competitiveness remains strong and adaptable to changes within the global trading environment.

The Economic Survey, prepared by the Economic Division of the Department of Economic Affairs under the Ministry of Finance, provides an in-depth look at the economic indicators for 2023-24. It also offers projections and guidance for the current fiscal year.

The Survey indicates that the headline inflation rate is under control, though some specific food items remain elevated. The trade deficit in FY24 was lower than in FY23, with the current account deficit around 0.7% of GDP. Foreign exchange reserves remain ample.