According to the RBI’s monthly bulletin, which was released on Monday, there are indications that net exports, a measure of India’s growth, may be on the rise again. This is because, following a decline in 2023–2024, outbound shipments from the nation are currently expanding in 2024–2025.
It stated that, with the exception of China, nine out of the top ten export destinations—which account for about half of the entire value of exports—are seeing rising demand.
The paper notes that while traditional exports like gems and jewelry, textiles, clothing, leather products, and marine products are becoming less competitive, India’s export basket is also shifting towards electronics and engineering goods.
It claims that business support services like engineering, research, design, and consulting are quickly overtaking software and information technology to become India’s top export earner. They also include services for public relations, advertising, logistics, accounting, auditing, architecture, and law.
The factors propelling this expansion include the growing need for specialized services and the incorporation of services into manufacturing processes.
The paper goes on to say that global capability centers are determining the next moves in this export push, including the development of business and knowledge process outsourcing.
The Commerce Ministry has prepared numbers showing a positive growth of 4.15 per cent on the cumulative value of merchandise exports during April-July 2024, which was $144.12 billion, compared to $138.39 billion during the same period in 2023.
Exports of electronic goods, which include smartphones, rose from $2.04 billion in July 2023 to $2.81 billion in July 2024, a 37.31% rise. Exports of engineering items rose 3.66 percent, from $8.72 billion in July 2023 to $9.04 billion in July 2024, while exports of medications and pharmaceuticals rose 8.36 percent, to $2.31 billion, in the same month.
The RBI research goes on to say that as India’s ports and shipping undergo technological breakthroughs, restructuring, and strategic infrastructure, logistics are also getting better. Specifically, port development entails increasing connection and capacity for cargo handling. Growing public-private partnerships and enhancing security and operational efficiency are being facilitated by RFID-based port access management.
Ninety of the 166 projects that were started at significant ports as part of the Sagarmala initiative have been finished, increasing capacity by more than 230 million tons annually. The RBI research also notes that the availability of a 10-year tax exemption and 100% foreign direct investment (FDI) is encouraging the construction, upkeep, and operation of ports.
