Top 10 Products to Export from India in 2024: Market Trends

Indian exports have hit the highest in the financial year 2023-24 with an overall export of 778 billion USD (including goods and services). The previous year, it stood at 776.3 billion USD, a 14 % increase compared to the FY 2021-22 exports. India has improved its rank from 19th to 17th in the world in terms of its merchandise exports. Out of about 238 destinations in the world, India exports to about 115 nations. All these projects are nothing but India emerging as an important player in global exports.

Considering such growing figures, India needs to expand its exports into the vacuums it has not considered yet. Moreover, along with the growth in exports to India, there was an increase in imports, which resulted in a trade deficit for India. The merchandise exports in the FY 2023-24 have also reduced. With an availability of diverse resources, India has the full potential to reach further heights and explore growth opportunities.

The balance of payment is a crucial element that India must maintain to remain in a good position in global markets. This article highlights the top 10 products in which India can grow its exports, backed by several factors that make it profitable.

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Overview of Indian Exports

As mentioned earlier, for FY 2023-24, India’s overall exports accounted for 778 billion USD, including goods and services, of which the merchandise exports alone crossed 43.7 billion USD. It is pertinent to mention that the merchandise exports for the previous year stood at 451.1 billion USD, indicating a marginal decrease in the same. Pharmaceuticals, engineering goods, and chemicals were significant in our exports.

Top Export Destinations

The export trade with the United States, the United Arab Emirates, and the Netherlands alone accounts for 52% of India’s exports. Netherlands, India’s third largest export destination, became important news in Indian trade. Understanding India’s top 5 export trade destinations and what we export to them is important. The top 5 export destinations of India are as follows:

1.     The United States

India’s exports to the US stood at 75.1 billion USD, making it India’s largest export destination. The US is one of India’s few export destinations, and India has a trade surplus. The top 5 products that contributed heavily to these export figures are:

• Pearls, precious stones, metals, and coins contributed 10.17 billion USD in India’s total exports, with the USA
• Electrical and electronic equipment contributed 9.89 billion USD.
• Pharmaceutical products contributed 7.55 billion USD.
• Mineral fuels, oils, and distillation products contributed 6.52 billion USD.
• Machinery, nuclear reactors, and boilers contributed 5.99 billion USD.

2.     United Arab Emirates

India’s exports with UAE were about 35.6 billion USD, making it India’s second largest export destination. The top 5 products contributing to the export to UAE are:

• Petroleum products contributed 8.05 billion USD.
• Gold and other precious metal jewellery contributed 3.22 billion USD.
• Telecom instruments contributed 2.70 billion USD.
• Pearls, precious and semi-precious stones contributed 2.46 billion USD.
• Iron and steel contributed 1.05 billion USD.

3.     Netherlands

India exported 22.36 billion USD worth of goods to the Netherlands in the FY 2023-24, making it the third-largest export destination of India. The top 5 products that contributed to this export were:

• Mineral fuels, oils, and distillation products contributed 14.99 billion USD.
• Electrical and electronic equipment contributed 1.68 billion USD.
• Organic chemicals contributed 1.02 billion USD
• Pharmaceutical products contributed 531. 78 million USD
• Machinery, nuclear reactors, and boilers contributed 478.82 million USD.

4.     China

India’s export with China is about 16.25 billion USD for the FY 2023-24. Although exports have increased, imports from China have also increased, creating a trade deficit of over 85 billion USD. The top 5 products that we export to China are:

• Iron ore contributed 256 million USD.
• Marine products contributed 103 million USD.
• Copper and copper products contributed 54.6 million USD.
• Spices contributing 50.1 million USD.
• Castor oil contributed 43.4 million USD.

5.     The United Kingdom

India’s UK exports were 12.48 billion USD for the FY 2023-24. The top 5 products contributing to the export trade are:

• Electrical and electronic equipment contributed 1.71 billion USD.
• Machinery, nuclear reactors, and boilers contributed 1.37 billion USD.
• Mineral fuels, oils, and distillation products contributed 1.28 billion USD.
• Articles of apparel, not knit or crocheted, contributed 738.91 million USD.
• Pharmaceutical products contributed 636.43 million USD.

Top 10 Products for Export in 2024

Despite the above statistics, the top 10 products for export from India include not only the ones present in the above statistics but also the ones that remain untapped and have a huge scope of growth considering the circumstantial factors conducive to it. These top 10 products are as follows:

·        Pharmaceuticals

India is often referred to as the ‘Pharma of the world’, considering its huge contribution to the world. In 2024, it will remain at the top, as seen among the 5 top export destinations; it remains among the top 5 products exported to 3 of the export destinations. Increased demand for generic medicines in developing developed countries is one of the reasons for this. Indian firms are also expanding their capabilities in biologics and biosimilars, which further contributes to this. India is also one of the largest vaccine producers, meeting rising global vaccine demand.

Apart from the countries mentioned above, the key destinations for pharmaceutical exports are European countries, where the demand for biosimilar and generic drugs is increasing, and African countries, which could import affordable medicines from India, particularly for infectious diseases.

There are various factors conducive to the growth of pharmaceuticals:

1. India’s robust manufacturing capabilities and affordable pricing.
2. Production-linked incentive scheme that provides strong support for research and development from the government.
3. Support from organizations like the Pharmaceutical Export Promotion Council of India (Pharmexcil) helps to navigate the regulatory challenges and expand market reach.

·        Textiles and Apparel

The textile industry has a long trade history in India. Its products range from traditional handlooms to modern textiles. The year 2024 will see a surge in the demand for sustainable and eco-friendly clothing. For India, this represents a competitive advantage and an untapped opportunity that it should explore.

There has been a rising global trend for organic cotton and sustainable fashion. There is also increased interest in the global markets for traditional textiles such as khadi and handloom products. Technical textiles used in various industries, such as healthcare and sports, are also growing. The market trends stand promising for India.

The United States has stood as the major market for Indian apparel, especially in the organic and sustainable segments. The European market has a high demand for high-quality textiles and sustainable fashion. The Middle East has also seen a growing demand for Indian apparel, considering the rising expatriate population there. The conducive factors driving the growth of this industry are:

1. Government incentives, like the Remission of Duty and Taxes on Exported Products (RoDTEP) scheme, give textile manufacturers a competitive advantage in pricing.
2. Rising consumer awareness and demand for sustainable fashion globally.
3. The role of the Ministry of Textiles in promoting exports and maintaining high standards.

·        Information Technology Services

If we consider India’s exports in services alone, the IT sector is the major contributor to it. The ongoing digital transformation across industries worldwide has increased the demand for IT services, predicting further growth. India has expertise in software development, cloud computing, AI, and cybersecurity, which makes it one of the major players in the IT industry globally.

The United States is the largest market for IT services, particularly software development and digital transformation. There is a rise in the outsourcing of digital services in European countries, particularly. Southeast Asia is an emerging market with increasing IT needs.

The factors that contribute to the growth of this industry in India are:

1. India’s skilled workforce and cost-competitive services.
2. Initiatives of government like Digital India and Skill development programs to support IT growth.
3. The National Association of Software and Service Companies (NASSCOM) continues to drive the sector’s export potential through various initiatives and partnerships.

·        Automobile Components

The Indian automobile industry may boom because of the global shifts towards electric vehicles and sustainable automotive solutions. India’s strong manufacturing base and competitive pricing make it well-positioned in the global market for this industry.

The United States can become a major market for Indian auto components, particularly in the EV segment. In European countries, there has been a surge in the demand for sustainable and high-quality automotive parts. There has been a growing interest in Japan in India’s EV components.

The factors conducive to this industry are:

1. Government initiatives like the PLI scheme for the automotive sector.
2. India’s competitive advantage in manufacturing cost and quality standards.
3. The Society of Indian Automobile Manufacturers (SIAM) supports the industry players in expanding their exports and meeting international standards.

·        Agricultural Products

India is already one of the world’s largest producers of agricultural products. The growing demand for organic products and the increasing awareness of a health-conscious choice of foods has created another market to tap into. India is already known for its spices, rice, and tea. However, the organic market is going to see significant demand.

Middle Eastern countries are particularly the major importers of spices, Indian rice, and other agricultural products from India. The United States is a growing market for organic and speciality foods from India, and there is a strong demand for high-quality organic agricultural products in European countries.

The factors conducive to this industry are:

1. India’s diverse agricultural base and ability to produce a wide range of products.
2. Support of the government through various agricultural schemes.
3. The Agricultural and Processed Food Products Export Development Authority (APEDA) plays a vital role in promoting exports and ensuring compliance with international standards.

·        Gems and Jewellery

India is known for its unique jewellery designs and gems. A boom is expected in handcrafted jewellery, especially in the luxury segment. The global market is shifting towards ethically sourced gems and custom-designed jewellery, which is India’s strength.

The United States is a major market for Indian diamonds and handcrafted jewellery. Hong Kong has become a significant hub for the global gems and jewellery trade. The United Arab Emirates has a strong demand for gold and diamond jewellery.

The factors conducive to the growth of this industry are:

1. Expertise in India in cutting and polishing diamonds and creating intricate jewellery designs.
2. There are several government initiatives, such as the Gems and Jewellery Export Promotion Council (GJEPC), to boost exports.
3. There has been a rise in global market preference for sustainable and ethically sourced products, which aligns with India’s capabilities in this sector.

·        Engineering Goods

There has been a global push for infrastructural development and industry automation. India’s advantage is that it is one of the major suppliers of engineering goods. Thus, the demand for Indian engineering goods, including machinery, industrial equipment, and infrastructure-related products, will increase in 2024.

The United States has always been a significant market for Indian engineering goods. Germany also has a demand for high-quality industrial machinery and tools. Recently, there has been a growth in infrastructure in African countries, leading to a growing demand for engineering products there. The factors conducive to this sector are:

1. India’s competitive market pricing and adherence to global quality standards.
2. Support of the government through schemes like the Engineering Export Promotion Council (EEPC).
3. The ability of India to produce customized solutions for different markets plays a big role in India’s export potential.

·        Organic Chemicals

Recently, the demand for organic chemicals has grown, and India has been a strong performer in this market. In 2024, the demand for organic chemicals used in pharmaceuticals, agriculture, etc., is set to rise.

The United States is the biggest importer of Indian organic chemicals. Even the European countries have a high demand for speciality and high-purity chemicals. The ASEAN countries (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) are a growing market for Indian organic chemicals, especially in manufacturing and agriculture.

The factors conducive to this industry are:

1. India’s capacity to produce a wide range of organic chemicals with an established chemical manufacturing base.
2. Government support through the Chemical Export Promotion Council (CHEMEXCIL) helps companies navigate global markets and ensures adherence to global standards.
3. The overall global shift towards sustainable practices gives India, which is known for producing environment-friendly chemicals, a competitive edge.

·        Leather Products

India is one of the largest producers in the leather industry globally, producing a wide range of products from footwear to accessories. In 2024, there will be a growing demand for ethically produced leather goods, and India can be a major supplier. There is scope for growth in expanding the vegan leather segment, which aligns with the global trend of cruelty-free products.

The United States has been one of the largest importers of Indian leather products. Recently, there has also been a demand in European countries for ethically produced leather products. As a result of the high disposable incomes in the Middle East countries, there has been a growing demand for luxury leather products there.

The factors conducive to the growth of this industry are:

1. The strong tradition of India in leather craftsmanship for ages, as well as a large skilled workforce.
2. Government initiatives like the Integrated Development of Leather Sector (IDLS) Scheme modernize and support the industry.
3. The Council for Leather Exports (CLE) promotes Indian products in global markets and ensures adherence to environmental standards.

·        Furniture

The furniture industry globally is more focused on sustainability and customization. India is well-positioned to meet these needs. It has a long history of rich craftsmanship in furniture making. The growing demand for eco-friendly materials like furniture made of reclaimed wood may lead to an increased demand for Indian furniture worldwide.

Again, the United States is a significant market for Indian wooden and handcrafted furniture. European countries have a high demand for sustainable and design-oriented furniture. In Australia, there has been a growing demand for unique and eco-friendly furniture produced in India.  The factors conducive to this industry are:

1. India’s heritage in rich craftsmanship concerning wood articles demonstrates its ability to combine traditional craftsmanship with modern manufacturing techniques.
2. Several government initiatives, like the Export Promotion Capital Goods (EPCG) Scheme, help the furniture sector improve its export capabilities.
3. The Export Promotion Council for Handicrafts (EPCH) is important in promoting Indian furniture in global markets and ensuring it meets global standards.

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Conclusion

Though India’s exports for FY 2023-24 have been record high, the trade deficit still lies in disturbing the balance of payments. There are several policies that India should take to curb this issue, including the Anti-Dumping policy.

The global shift towards sustainable, eco-friendly, and cruelty-free products matches India’s inherent environment-friendly practices well. A large manufacturing base in a wide range of sectors, as well as the expertise of years in producing them, drive India further among the world’s top exporters. Several government initiatives will also play a major role in this.

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