At a time when global trade is facing geo-political uncertainties, India’s exports of goods like automobiles and gold jewellery have ventured into uncharted territories of Central Asia, Africa and Latin America, according to an analysis by the Commerce Ministry.
The analysis has shown that India has penetrated into what are termed as “absolutely new markets” in regions such as Africa, Central Asia, Latin America and North America during April-December 2023.
The “absolutely new markets” refer to areas where India did see any export during April-December 2022, but healthy growth of certain principal commodities like motor vehicles, two- and three-wheelers, petroleum products, sugar, gold and other precious jewellery were recorded in April-December 2023. Also Read – Six oil & gas sector PSUs fined for failure to appoint directors Exports of these commodities to the absolutely new markets during April-December 2023 stood at $234 million as against nil shipments during the same period of 2022.
It added that these commodities captured a greater number of markets in the Central Asia, Africa, and European regions.
“A comprehensive examination of country-wise exports underscores a notable diversification of markets for India’s merchandise exports, characterised by the exploration of new export destinations, in spite of strong global headwinds with subdued performance globally,” an official said. The official added that after evaluating the market diversification of the country’s merchandise exports across major sectors at the principal commodity level, comparing the periods from April-December 2022-23 to April-December 2023-24, significant advancements in market diversification emerged in the current fiscal. Also Read – India to add 18 more N-power reactors by 2032, says NPCIL These diversified markets are termed as “absolutely new”, “new”, and “promising”.
“Together, exports to these markets capture 5 per cent of India’s total exports of 42 principal commodities to the world. These commodities span across 16 important sectors of India’s export basket,” the official added. In the new markets, where India’s exports share of goods like ceramics and allied products, aluminium, products of aluminium, two- and three-wheelers, products of iron and steel, electric machinery and equipments was meagre or nil has jumped to $2.17 billion during April-December 2023.
These items have captured a greater number of markets in the America, Central Asian, and African regions. Also Read – GST Council may soon clarify tax exemption to RERA, says official The analysis showed that the export of two- and three-wheelers has been headed to 31 new markets/countries with a total exported value of $110 million in the April-December 2023 period. Similarly, in the “promising markets” such as North and South American, European, and African regions, where the share of the country’s outbound shipments of these commodities was less than 1 per cent, has now increased to $$8.6 billion during the first nine months period of this fiscal.
“Despite challenging global conditions, India has demonstrated notable export growth, maintaining its position in established markets while proactively exploring new ones,” the official said. This strategy not only reduces dependency on specific markets but also enhances India’s competitiveness and contributes to economic development, the official added.