At a time when global trade is facing geopolitical uncertainties, India’s exports of goods such as cars and gold jewelery have ventured into uncharted territories of Central Asia, Africa and Latin America, a commerce ministry analysis shows.
The analysis found that India has penetrated what are called ‘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 saw some exports but healthy growth in certain key commodities such as motor vehicles, two and three-wheelers, petroleum products, sugar, gold and other precious jewelery during the April-December 2022 period. recorded April-December 2023.
Exports of these raw materials to the absolutely new markets amounted to $234 million in April-December 2023, while there were no deliveries in the same period of 2022.
It added that these commodities captured a greater number of markets in Central Asia, Africa and European regions.
“A comprehensive survey of country-by-country exports underlines a remarkable diversification of Indian merchandise export markets, marked by the exploration of new export destinations, despite 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 key sectors at the key commodity level, comparing the periods of April-December 2022-23 with April-December 2023-24, in the current situation, significant progress in market diversification emerged. fiscal.
These diversified markets are called “absolutely new”, “new” and “promising”.
“Together, exports to these markets represent 5 percent of India’s total exports of 42 key commodities to the world. These commodities cover 16 key sectors of India’s export basket,” the official added.
In the new markets, where India’s export share of goods such as ceramics and allied products, aluminium, aluminum products, two and three wheelers, iron and steel products, electrical machinery and equipment has been meager or nil, it has risen to 2.17 billion dollar in April-December 2023.
These items have captured a larger number of markets in the Americas, Central Asia and Africa regions.
The analysis revealed that two- and three-wheeler exports are heading to 31 new markets/countries with a total export value of USD 110 million during April-December 2023.
Similarly, in the ‘promising markets’ such as the Americas, European and African regions, where the country’s share of outbound shipments of these commodities was less than 1 percent, has now increased to 8.6 billion dollar during the early years. period of nine months of this financial year.
“Despite challenging global conditions, India has shown remarkable export growth, maintaining its position in established markets while proactively exploring new markets,” the official said.
This strategy not only reduces dependence on specific markets but also increases India’s competitiveness and contributes to economic development, the official added.
India’s exports rose to a three-month high of 3.12 percent to $36.92 billion in January despite global uncertainties including the Red Sea crisis, while the trade deficit fell to a nine-month low of 17, $49 billion.
Cumulatively, exports fell by 4.89 percent to $353.92 billion in the April-January period of this fiscal. Imports contracted by 6.71 per cent to USD 561.12 billion, leaving a trade deficit of USD 207.2 billion in the ten months of this fiscal, compared to USD 229.37 billion in April-January 2022-23.
The Red Sea crisis is impacting exporters as it has increased transport costs as they take a longer route – via the Cape of Good Hope, which surrounds Africa – to ship their goods to Europe and certain parts of Africa. The war in Russia-Ukraine and Israel-Hamas also has consequences for global exports and imports.
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First print: February 25, 2024 | 11:02 am IST