Understanding a nation’s exports is better appreciated when you can see the overall economic export conditions. In this article, we will examine the top five exports from India and current market conditions across each of the export categories.
As a member of the Brazil, Russia, India, and China (BRIC) economies, India is becoming a significant player in the global and national marketplace. It is currently the world’s 17th largest export economy. This position gives India the foothold it needs to remain competitive in international trade.
Exports in India have seen a considerable growth over the past five years – an annualized rate of 1.2% - which created a negative trade balance of $125B in 2017. According to OEC, the Gross Domestic Product (GDP) of India was $2,6T while the GDP per capita was $7,06K in 2017.
The main exports of India (currency shown in USD) include:
As you can see, refined petroleum makes up a large bulk of India’s main exports. In fact, it represents 10.3% of the country’s total exports and is closely followed by diamonds, which accounts for 9.1%.
This probably won’t come as a surprise – a large part of India’s exports makes their way to United States. However, USA is not India’s sole export partner. Here are India’s top 5 export destinations
Although, as mentioned above, refined petroleum is India’s top export, none of India’s main export partners represent this fact: exports to the US and Hong Kong from India are largely dominated by diamonds while its exports to the United Arab Emirates are led by jewelry. On the other hand, China’s main import from India is refined copper and Germany’s is gas turbines.
Many initiatives seek to increase the main exports as well as the main imports of India. Government efforts, planning, and strategy are directly contributing to the overall growth in a considerable way, and the world is taking note that India is a real economic powerhouse.
Government benefits include export schemes, financial assistance, and other state mandated benefits that the Government of India provides to its economy. So far, everything is moving in the right direction, including an increase in exports for the foreseeable future.
Even though India is one of the largest world economies, it’s interesting that the government created economic platforms that encouraged India to make progress. Moving away from the nation’s developing exterior, India is taking advantage of its unique market position to compete in a rapidly globalizing network of exporters around the globe.
All in all, India has a robust approach for its economy to survive unanticipated outside forces as well. Its main exports are viable, natural resources that are limited in nature, or they are on-trend with the current demand for retail products around the world. In short, India’s efforts to actively manage its imports and exports are paying off in a significant way, which makes them a smart choice for conducting business internationally.
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Klaus Lydsal, vice president of operations at iContainers