India’s Exports Projected To Cross USD 814 Billion In 2024; Reflecting Modest Growth

India’s overall exports of goods and services are projected to surpass USD 814 billion in 2024, marking a growth of 5.58% compared to USD 768.5 billion in 2023, according to a report by the economic think tank Global Trade Research Initiative (GTRI). The surge highlights India’s continued growth trajectory in global trade despite a global economic slowdown.

India’s merchandise exports estimated to reach USD 441.5 billion in 2024, a 2.34% increase from USD 431.4 billion in 2023. While this growth is relatively modest, it indicates steady demand for Indian goods in international markets.

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Ajay Srivastava, Founder of GTRI, commented on the changing dynamics of India’s export landscape, highlighting both opportunities and vulnerabilities. He pointed out that sectors like machinery and electronics are gaining increasing prominence, with machinery’s share in the export basket rising to 6.9% in 2024 from 3.8% in 2014, and electronics increasing to 7.9% from 3.3% in the same period.

These trends reflect India’s growing capabilities in high-value sectors, which are essential for ensuring long-term resilience in exports, according to Srivastava.

Decline In Traditional Export Sectors

While newer sectors show promise, traditional export industries are experiencing a decline. Textiles and garments, which accounted for 21.1% of India’s exports in 2004, now represent just 8%. Similarly, gems and jewellery, once 16.9% of exports in 2004, have fallen to 7.5% in 2024. Srivastava attributed these declines to shifting global demand patterns and India’s challenges in remaining competitive in labor-intensive industries.

Looking ahead, Srivastava cautioned that India’s exports will face significant challenges in 2024. The global trade environment remains sluggish due to factors such as slow economic recovery in developed markets and ongoing geopolitical tensions, notably the Russia-Ukraine war and the Israel-Hamas conflict.

Additionally, disruptions in critical shipping routes, such as those in the Red Sea, continue to heighten supply chain vulnerabilities, further complicating the export outlook for India in the coming year.

While India’s exports poise      to grow in 2024, the country faces multiple challenges that could impact its export performance. However, with its expanding capabilities in high-value sectors and a resilient services industry, India remains a strong player in the global trade arena.