Trade Competitiveness

India has made significant strides in global trade, becoming a major player in various export sectors. This progress reflects India's growing manufacturing capacity, technological advancements, and government initiatives designed to boost exports.

Key Export Achievements:

• Petroleum Products: India is now the second-largest global exporter of petroleum oils, with exports rising from $60.84 billion in 2014 to $84.96 billion in 2023, capturing 12.59% of the global market. This growth is due to India’s advanced refining infrastructure and increased production capacity.
• Agrochemicals: India is now the third-largest global exporter of agrochemicals, including insecticides and fungicides. Exports in 2023 reached $4.32 billion, up from $2.04 billion in 2014. This success is driven by investments in research and development and adherence to international standards.
• Sugar: India is the second-largest global exporter of sugar, with exports growing from $1.17 billion in 2014 to $3.72 billion in 2023. India’s share in the global sugar market rose from 4.31% in 2014 to 12.21% in 2023, fueled by strong agricultural policies.
• Electronics and Electrical Components: Exports of electrical transformers and components grew from $1.08 billion in 2014 to $2.85 billion in 2023, making India the 10th largest global exporter in this category. The growth is due to initiatives like "Make in India" and the Production-Linked Incentive (PLI) scheme.
• Rubber Tyres: India’s exports of rubber pneumatic tyres grew from $1.49 billion in 2014 to $2.66 billion in 2023, securing the 8th position in the global market. The focus on quality and cost competitiveness has made India a key player in this sector.
• Semiconductors: India’s semiconductor exports have increased from $0.23 billion in 2014 to $1.91 billion in 2023, rising from 20th to 9th globally. India is expanding its role in the global semiconductor supply chain through domestic manufacturing and innovation.
• Precious Stones: India has become the world leader in the export of precious and semi-precious stones, with exports reaching $1.52 billion in 2023. India’s market share surged from 2.64% in 2014 to 36.53% in 2023, owing to its centuries-old craftsmanship and modern technology in gemstone processing.

Government Initiatives to Boost Exports:

• New Foreign Trade Policy (FTP): Launched in 2023, the FTP focuses on four main areas: providing incentives for remission, promoting export collaboration, enhancing business ease, and focusing on emerging sectors like e-commerce. The policy also includes initiatives like the "Towns of Export Excellence Scheme" to recognize new export hubs.
• Production-Linked Incentive (PLI) Scheme: With an investment of ?1.97 lakh crore, the PLI scheme aims to enhance manufacturing in 14 key sectors, such as electronics, automobiles, and textiles. This scheme has already contributed to job creation and increased production and exports.
• RoDTEP and RoSCTL Schemes: These schemes aim to rebate taxes and levies on export products, making exports more competitive. The RoDTEP scheme, expanded in 2022, now covers more sectors, including pharmaceuticals and chemicals.
• Districts as Export Hubs: This initiative supports local exporters and manufacturers by identifying export-potential products in each district and addressing bottlenecks. It encourages employment generation and regional economic growth.
• Digital Platforms and Ease of Doing Business: The government has launched various digital platforms like the Trade Connect e-Platform to link exporters with resources and improve export processes. Additionally, measures like reducing compliance burdens and streamlining business procedures through the National Single Window System (NSWS) have helped improve India's business environment.
• Attracting Investments: Reforms in Goods and Services Tax (GST), corporate tax reduction, and the introduction of quality control orders (QCOs) have made India more attractive for both domestic and foreign investments. This has strengthened India’s manufacturing base and its ability to export more competitively.
• E-Commerce Export Hub (ECEH): India is developing cross-border e-commerce to boost exports, particularly from SMEs and artisans. The goal is to reach USD 100 billion in e-commerce exports by 2030, improving market access for small producers.
• Logistics and Infrastructure Development: The PM GatiShakti National Master Plan and the National Logistics Policy aim to improve connectivity and reduce logistics costs. These policies are designed to enhance India’s integration into global supply chains.