Overall, India’s export share grew from 1.2 per cent in 2005 to 2.4 per cent in 2023. This growth has been driven by factors such as robust trade agreements, a diversified export portfolio, improved logistics infrastructure, and government initiatives like the Make in India campaign and the Production-Linked Incentive (PLI) scheme.
It also said “India’s performance in services exports better than goods: India ranks 16th globally in merchandise exports and the seventh in services exports
Similarly, India’s share in global imports also witnessed an increase. Merchandise imports rose from 1.3 per cent in 2005 to 2.8 per cent in 2023, while services imports increased from 2.4 per cent to 3.4 per cent. Overall, India’s share in global imports grew from 1.5 per cent to 2.9 per cent during this period.
India’s performance in services exports stands out. Services account for 43.8 per cent of India’s total exports, the highest share among major global economies, compared to the global average of 24.7 per cent.The report says that India’s export growth was robust in the first two decades post-liberalization, with a CAGR of 11.1 per cent during FY 94 to FY04 and 17.3 per cent during FY04 to FY14. However, the last decade (FY14-FY24) saw a significant moderation in export growth. Export growth slowed to a CAGR of 3.3 per cent due to subdued global demand, trade protectionism, and disruptions like the COVID-19 pandemic and geopolitical tensions.
Services exports too moderated but sustained a higher CAGR of 8.4 per cent in the last decade, reflecting India’s comparative advantage in sectors like IT, financial and consulting services.
This growth has been driven mainly by factors like multilateral and bilateral trade agreements, initiatives like Make in India and Production Linked Incentive (PLI) schemes, diversification of export baskets, and development of logistics infrastructure.
The report also stated that India holds a Relative Comparative Advantage (RCA) in key sectors such as agriculture, textiles, chemicals, and pharmaceuticals. However, the country lags in machinery, transport equipment, and electronics, indicating areas for further development.
The report highlighted global trade dynamics over the past two decades. China’s share in global merchandise exports increased significantly, largely at the expense of traditional export leaders like Japan, Germany, France, the UK, and the USA. In services, India and Singapore improved their shares, while the USA experienced a decline.
It said, “global merchandise exports have shifted towards China, largely at the expense of Japan, Germany, France, UK and USA”.
