9:29 AM Thursday, June 13, 2024
9:29 AM Thursday, June 13, 2024
India's export share in world trade 2022

India’s export share in world trade 2022

India's export trade statistics of 2022

by IET

India’s export share in world trade 2022

India’s export share in world trade in sectors such as pharma, gems and jewellery, leather, and footwear declined in 2022 as compared to 2015, according to a report by think tank GTRI. However, there is an increase in the share of electronics, machinery, petroleum, auto parts, iron and steel, and aluminium products’ exports during the period.

“India’s global market share in sectors like apparel, leather, shoes, and marine products has been decreasing, primarily due to concerns over quality rather than pricing issues,” Global Trade Research Initiative (GTRI) Co-founder Ajay Srivastava said.

The report said that the key sectors that witnessed a higher share in global trade are electronics, telecom, mobile phones, and electrical equipment, as well as machinery. This is noteworthy as these product groups hold substantial importance in world trade, which exceeds USD 6 trillion.

“In 2022, India’s share in global merchandise trade stood at 1.8 per cent. However, its share in machinery and electronics was a mere 0.75 per cent and 0.4 per cent, respectively in 2015. Over the course of seven years, there has been a marginal yet significant improvement in these shares,” it said.

The report also stated that quality issues are not limited to pharmaceuticals but also affect Indian aquaculture products, such as shrimp and prawns. Many countries reject these products due to the presence of salmonella (a kind of bacteria), highlighting the need for a robust internal system.

Quality issues have also impacted Indian tea exports, with reports of countries holding consignments of Indian teas citing phytosanitary issues and presence of pesticides exceeding permissible limits, it said.

The report said that the reputation and orders of the pharma industry can be severely impacted by a single instance of poor-quality cough syrup. To maintain its position as the pharmacy of the world, India must prioritize addressing quality issues, it said adding reducing critical dependence on imports of Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs) from China is essential.

Share of India’s pharma exports in the world trade dipped to 2.25 per cent in 2022 as against 2.79 per cent in 2015.

Share of gems and jewellery dropped to 4.74 per cent in 2022 as against 7.47 per cent in 2015. Similarly, the share of fish and crustaceans; and leather items dipped to 4.52 per cent and 2.92 per cent in 2022 as against 4.77 per cent and 3.65 per cent, respectively in 2015, it said.

On the other hand, share of India’s automobiles and parts’ exports in the world trade increased to 1.32 per cent in 2022 as against 1.11 per cent in 2015.

Similarly, share of iron and steel; and aluminium products rose to 2.66 per cent and 3.55 per cent in 2022 as against 1.98 per cent and 1.69 per cent, respectively in 2015, it added.

The report attributed the decline in India’s export share in these sectors to a number of factors, including:

Quality concerns: The report found that quality concerns are a major factor affecting India’s export performance in these sectors. For example, in the pharmaceutical sector, there have been reports of Indian pharmaceutical companies exporting substandard drugs. This has led to a loss of confidence in Indian products among buyers in other countries.

Competition from other countries: India is facing increasing competition from other countries in these sectors. For example, in the pharmaceutical sector, China is now a major exporter of generic drugs. This has made it more difficult for Indian companies to compete in the global market.

Domestic challenges: The report also noted that India is facing a number of domestic challenges that are affecting its export performance. These include:

Infrastructure bottlenecks: India’s infrastructure, such as roads and ports, is not well-developed. This makes it difficult and expensive to export goods from India.

Lack of skilled labor: India lacks a skilled workforce in some of these sectors. This makes it difficult for Indian companies to compete with foreign companies that have access to a more skilled workforce.

The report concluded that India needs to address these challenges if it wants to increase its export share in world trade. The report recommended that the government focus on improving infrastructure, providing training to workers, and addressing quality concerns.

In addition to the factors mentioned in the GTRI report, there are a few other reasons that may have contributed to the decline in India’s export share in these sectors. These include:

The rise of protectionism: In recent years, there has been a rise in protectionism in many countries. This has made it more difficult for Indian companies to export their goods to these countries.

The COVID-19 pandemic: The COVID-19 pandemic has also had a negative impact on India’s export performance. The pandemic has disrupted global supply chains and reduced demand for Indian goods.

Despite these challenges, India still has the potential to increase its export share in world trade. The country has a large and growing population, a skilled workforce, and a rapidly growing economy. If India can address the challenges it faces, it can become a major exporter of goods and services in the years to come.

The decline in India’s export share in world trade in certain sectors is a cause for concern. However, the country still has the potential to increase its export performance. By addressing the challenges it faces, India can become a major exporter of goods and services in the years to come.

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