High-Tech and Value-Added Products Drive India’s Export Growth
India’s merchandise export landscape is experiencing a significant transformation, with high-tech and value-added sectors such as electronics, engineering, pharmaceuticals, and agriculture taking center stage in the financial year 2024-25. According to newly released government data, these four sectors collectively contributed over 50 percent of the nation’s total exports, indicating a strategic shift from traditional exports to innovation-driven segments. This change is largely attributed to successful policy initiatives like the Production-Linked Incentive (PLI) schemes and the “Make in India” program, which aim to enhance domestic manufacturing and technology-intensive exports.
Engineering Goods Lead the Charge
Engineering goods have maintained their position as the top export category, accounting for 26.67 percent of India’s total exports, valued at approximately $437.42 billion. In the last fiscal year, shipments in this sector increased by 6.74 percent year-on-year, reaching $116.67 billion. Key markets for these exports include the United States, the United Arab Emirates, Saudi Arabia, the United Kingdom, and Germany. Since the fiscal year 2022, engineering exports have consistently surpassed the $100 billion mark, showcasing the sector’s resilience and growth potential.
Electronics Exports Surge
The electronics sector has emerged as a standout performer, witnessing an impressive growth rate of 32.46 percent—the highest among all sectors. Exports in this category reached $38.58 billion, up from $29.12 billion in the previous fiscal year. Notably, exports have more than doubled since FY22. The surge is largely driven by the demand for computer hardware and peripherals, which saw its value double from $0.7 billion to $1.4 billion. Major markets for electronics exports include the UAE, the US, the Netherlands, the UK, and Italy. A senior government official highlighted the electronics sector as a “rising star” in India’s export landscape, underscoring the positive impact of targeted policy incentives.
Pharmaceuticals and Agriculture Show Strong Growth
Pharmaceutical exports also demonstrated robust growth, increasing by 9.4 percent to reach $30.47 billion. This growth reflects India’s ongoing commitment to supplying affordable, high-quality medicines to over 200 countries, a trend that has gained momentum since the pandemic. Meanwhile, agriculture and allied products saw exports rise by 7.36 percent, totaling $51.86 billion. India’s agricultural strength is evident in its diverse product base and leadership in key commodities such as rice, spices, coffee, and marine products. Notably, rice exports reached a record high of $12.5 billion, solidifying India’s status as the world’s leading rice exporter with a 40 percent share of the global market.
Outlook for India’s Export Economy
The growth in marine exports to $7.2 billion, along with increased shipments of fruits and vegetables to $3.9 billion, indicates a growing diversification in India’s agricultural trade. Additionally, tobacco and tea exports also performed well, with tobacco exports climbing to $1.98 billion and tea exports increasing to $0.92 billion. As the second-largest tobacco producer and seventh-largest coffee exporter globally, India is well-positioned in these markets. With a rising global demand for Indian products across value-added sectors and the success of government initiatives, the outlook for India’s export economy appears promising. This year’s data not only reflects a resilient export sector but also signals a strategic pivot towards more technology-intensive and globally competitive industries, laying a crucial foundation for India’s ambition to become a $5 trillion economy.
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