India has emerged as the fastest growing economy of the world with many credit rating agencies predicting a high growth rate of the Indian economy. According to the international Monetary Fund, India’s total Gross Domestic Product amounted to $8.027 trillion in the year 2015 out of which the exports accounted for 3.3% of the total GDP. When translated into dollars, the number is US $264 billion. A major share of the exports is to the Asian markets which account for 49.4% of the total exports. 17.1% of the exports are made to the North American markets, 18.7% to the European markets and 9.7% to Africa.
India’s top ten exports account for 58.1% of the total exports.
Cotton is tenth in the list with a total share of 2.8%. Cotton accounted for $7.5 billion in 2015. India is the largest producer and exporter of cotton yarn. Cotton industry holds a major share of the Indian textile sector. Besides cotton yarn, India also exports raw cotton, cotton fabrics and cotton madeups. The biggest importer of Indian cotton is USA with a share of 22.7% followed by China at 13.9%. Gujarat, Maharashtra, Madhya Pradesh, Punjab, Haryana and Rajasthan are some of the biggest cotton producing states in India.
9. Crochet Clothing
Crochet clothing exports accounted for $7.8 billion in 2015 with a share of 2.9%. Export of Crochet or knitted clothes averaged 94.39 million USD for the period starting from the year 1996 to the year 2015. Shawls, scarves, mufflers, veils, etc are all included in the crocheted clothing category. There are many manufacturers of crocheted clothing in India and this has emerged as one of the top ten exports of the country.
8. Electronic Equipment
Electronic Equipments are eighth in this list with a total share of 3% of the total exports. $7.9 billion worth of exports of electronic equipments were made in the year 2015. The electronics market in India is expected to reach $ 400 billion in the year 2022 while the production of electronic hardware goods is expected to reach $ 104 billion by the year 2020. India is still a major importer of electronic goods but the setting up of Special Economic Zones and Electronic Hardware Technology Parks by the government of India has encouraged FDI in the sector and is likely to enhance the growth rate for this industry.
7. Garments and Textiles
The export of garments and textiles earned a total revenue of $ 9.4 billion in 2015. The total share in the exports stood at 3.5%. The government of India is targeting a total of 30 billion dollars from the export of garments and textiles and an investment of $ 11 billion. In order to achieve this, the Central government has sanctioned a package of Rs 6000 crore for the textiles and apparel sector.
6. Organic Chemicals
The Indian Chemical industry is the second largest in Asia and India has emerged as one of the top ten chemical exporters in the world. Organic chemicals form a major part of the chemical exports from the country. It stood at $11.2 billion in the year 2015 with a share of 4.3% of the exports. The chemical industry in India comprises of 11,000 companies and employs 6,30,000 people. The United States of America imports a major portion of the Indian organic chemicals followed by China. The chemical industry along with petrochemicals accounts for about 3-5% of India’s GDP.
Pharmaceutical Industry in India is expected to reach US $55 billion in the year 2020. Pharmaceutical export from India reached $12.5 billion in the year 2015 with a share of 4.7% of the total exports. India has emerged as the largest supplier of generic drugs in the world with a share of 20% of the global export volume. There are many Indian pharmaceutical giants such as Ranbaxy, Sun Pharma, Glowchem, J. B. Chemicals & Pharmaceuticals, Suven Life Sciences Limited, Aurobindo Pharma, etc. who have contributed to the success story of the Indian pharmaceutical industry.
Machinery exports from India are at the fourth position with totala revenue of $ 13.2 billion in 2015. The share in the total exports stood at 5%. India has registered a 10.5% growth in the export of heavy machinery such as pumps, building construction tools, cars, etc. US and Europe account for about 60% of these exports and have emerged as the major destinations for the Indian machines.
The automobile sector in India has witnessed one of the fastest economic growths in recent years. The automobile industry in India produced 23.96 million vehicles in the year 2015-16. Hyundai is the biggest exporter of automobiles in India. With a total share of 5.3% and $14.1 billion worth of exports, automobiles occupy the third position in the list.
Oil accounted for 11.7% share of the exports in 2015 and generated a revenue of $30.9 billion. Even though India is mainly dependent on imported crude oil, the country exports many oil based products with many petrochemical industries such as Reliance Petroleum, Hindustan Petroleum Corporation Limited, ONGC, etc leading the charge.
1. Gems and Precious metals
India is one of the largest exporters of gems and jewellery in the world. The export of diamonds, gold jewellery and other precious stones stood at $ 38.8 billion in 2015 and formed 14.7% of the total exports. India has attained excellence in the manufacture of jewellery and diamond polishing.
Exports contribute significantly to the economy and the efforts of every government are directed towards reducing imports and enhancing exports.