India has emerged as a major exporting nation over the last few decades. Rising manufacturing capacity, abundant natural resources, skilled workforce, and cost competitiveness have given India an edge in several merchandise segments in the global export market. According to the latest data, India exported goods worth US$ 422.130 billion in 2021-22 and aims to achieve US$ 2 trillion in goods exports by the year 2030.
As India aims to accelerate economic growth and become a US$ 5 trillion economy, exports are going to play a pivotal role. With an increasing focus on improving ease of doing business, supportive government policies, and the Make in India initiative, India’s export is set to achieve greater growth in the coming years.
This article analyzes the top 20 product segments that hold the maximum potential for exports from India in 2024. These segments have been chosen based on India’s existing export performance, future export potential, global demand, domestic manufacturing capacity, and the existence of supporting policies. Understanding the most promising export segments will help exporters, manufacturers, and policymakers gain insight to boost India’s outbound shipments.
Leading Product Categories Exported from India
Here is a look at some of the major product categories where India holds a strong position in the global export arena:
- Petroleum Products: Petroleum products comprise India’s single largest export item. India is a net exporter of petroleum products like motor spirit, diesel, aviation turbine fuel, naphtha, and fuel oil.
- Gems and Jewellery: This category includes polished and rough diamonds, gold jewellery, precious & semi-precious stones. India is a global hub for jewellery manufacturing and exports.
- Organic Chemicals: Exports include benzene, toulene, xylenes, ammonia, urea, and various pharmaceutical ingredients.
- Vehicles and Auto Parts: Two/three wheelers, cars, trucks, buses, tyres, engine parts, accessories are key exports.
- Machinery: Industrial machinery, nuclear reactors, boilers, electronics are key exports.
- Pharmaceutical Products: Formulations, vaccines, ayurvedic medicines, and herbs are major items.
- Agricultural Products: Rice, sugar, cereals, oil meals, meat, marine products figure in the list.
- Manmade Yarns and Fabrics: Exports include cotton, silk, wool, synthetic fiber yarns and fabrics.
- Apparel and Clothing: Major items include t-shirts, baby garments, tracksuits, headgear, face masks and PPE kits.
Let us now look at the most promising product segments for export from India in 2024 in greater detail:
1. Rice
- Total Export Share – 5%
- Total Export Value – US$ 9 billion (2021-22)
- Main Export Countries – Saudi Arabia, Iran, Iraq, UAE, Nepal
- Rice production and milling capacity has expanded rapidly in India leading to high export surplus.
- The Centre has set an ambitious target of exporting 23 million tonnes by 2025.
- Aromatic & long grain basmati rice along with non-basmati varieties witness high demand.
2. Meat and Seafood
- Total Export Share – 4.8%
- Total Export Value – US$ 8.62 billion (2021-22)
- Main Export Countries – USA, China, Vietnam, Japan, Malaysia
- Rising health consciousness globally has boosted demand for high quality meat and seafood.
- Meat segment is led by beef and buffalo meat exports.
- In seafood, exports of shrimp, frozen fish and chilled items is surging.
3. Cotton Yarn
- Total Export Share – 2.6%
- Total Export Value – US$ 5 billion (2021-22)
- Main Export Countries – China, Bangladesh, Vietnam, Pakistan, Turkey
- India is second largest producer of cotton with fertile farmlands and cheap labor, well supported by spinning mills and can produce cotton yarn at large scale capacity.
- The country has free trade pacts with ASEAN nations, South Korea giving a boost to exports.
4. Automobile and Components
- Total Export Share – 4%
- Total Export Value – US$ 19 billion (2021-22)
- Main Export Countries – Mexico, South Africa, Sri Lanka, Indonesia, Chile
- India has favorable trade agreements with Thailand, Indonesia and presence of global automakers with local partners has boosted exports in recent years.
- Strong focus on electric vehicles and connected mobility presents long term growth opportunity.
5. Diesel
- Total Export Share – 3%
- Total Export Value – US$ 21 billion (2021-22)
- Main Export Countries – Singapore, France, Saudi Arabia, Indonesia, UAE
- India is establishing itself as a major refining hub in Asia with large refining complexes, fueling diesel exports.
- Expanding port infrastructure and growing base of coastal refineries to cater to overseas markets.
6. Sugar
- Total Export Share – 2%
- Total Export Value – US$ 4 billion (2021-22)
- Main Export Countries – Indonesia, Somalia, Afghanistan, Sri Lanka, Sudan
- Fluctuating domestic production affects sugar exports depending on seasonality and harvest.
- The government offers various subsidies and incentives to promote sugar exports during surplus years.
7. Manmade Filament Fabrics
- Total Export Share – 1.7%
- Total Export Value – US$ 4 billion (2021-22)
- Main Export Countries – Turkey, Italy, Bangladesh, Sri Lanka, Morocco, Vietnam
- India has established itself as second largest producer of manmade fibers like polyester, nylon, and acrylic after China.
- Availability of fibers like viscose, modal and lyocell provide advantage on value added fabrics.
8. Organic Chemicals
- Total Export Share – 2%
- Total Export Value – US$ 7 billion (2021-22)
- Main Export Countries – USA, China, Bangladesh, Germany, Brazil
- India has a strong and globally cost competitive chemicals industry catering to growing global demand for organic chemicals.
- Bulk drugs and drug intermediates exports are also rising steadily.
9. Cereals
- Total Export Share – 1.5%
- Total Export Value – US$ 2 billion (2021-22)
- Main Export Countries – Bangladesh, United Arab Emirates, Yemen, Nepal, Saudi Arabia
- India is a leading producer of rice, wheat and coarse cereals with huge surplus for exports in good crop years.
- The country has laid emphasis on improving connectivity with Bangladesh which is a key demand source.
10. Groundnuts
- Total Export Share – 1.7%
- Total Export Value – US$ 1 billion (2021-22)
- Main Export Countries – Indonesia, Philippines, Malaysia, China Egypt
- India is second largest groundnut producer globally and surplus is available for exports after domestic demand.
- Vietnam and Indonesia are major importers who use groundnuts as a key input for oil crushing industry.
11. Iron and Steel
- Total Export Share – 1.6%
- Total Export Value – US$ 18 billion (2021-22)
- Main Export Countries – Nepal, USA, Bangladesh, South Korea, Saudi Arabia
- India is second largest steel producer in the world with expanding capacity by major producers like Tata Steel, JSW Steel and SAIL.
- The country mainly exports semi-finished steel and intermediates along finished long products.
12. Electronics
- Total Export Share – 1%
- Total Export Value – US$ 15 billion (2021-22)
- Main Export Countries – UAE, USA, China, Germany, Netherlands
- India has established itself as a global hub for electronics manufacturing bolstered by supportive policies and incentives offered to players.
- Exports include telecom equipment, consumer electronics, industrial electronics and components.
13. Manmade Staple Fibers
- Total Export Share – 1.2%
- Total Export Value – US$ 2 billion (2021-22)
- Main Export Countries – Turkey, Bangladesh, Sri Lanka, Brazil, Korea
- Polyester and viscose staple fiber are key export items where India has created large capacity to cater to apparel sector demand overseas.
- Availability at competitive prices has boosted exports to Bangladesh and Vietnam.
14. T-Shirts
- Total Export Share – 1%
- Total Export Value – US$ 5 billion (2021-22)
- Main Export Countries – USA, UK, UAE, Germany, France
- Rising outsourcing of garments by major western high street retailers and fashion brands has led to higher exports of basic T-shirts from India.
- North India has seen rapid capacity addition in this segment buoyed by availability skilled labor.
15. Tea
- Total Export Share – 0.8%
- Total Export Value – US$ 1 billion (2021-22)
- Main Export Countries – Russia, Iran, UAE, USA, UK
- India has seen a steady rise in export of orthodox teas including varieties like Darjeeling tea and Assam Orthodox tea.
- The country is now expanding penetration in global markets like Europe and USA.
16. Ceramic Products
- Total Export Share – 0.8%
- Total Export Value – US$ 1 billion (2021-22)
- Main Export Countries – USA, Nepal Bangladesh, Australia, Germany
- India has an established ceramic industry catering to tableware, kitchenware and lifestyle product demand across major economies.
- Floor tiles, wall tiles, sanitaryware are other key exports.
17. Jute Manufactures
- Total Export Share – 0.5%
- Total Export Value – US$ 0.3 billion (2021-22)
- Main Export Countries – Bangladesh, Australia, Iran, Nepal, Egypt
- India commands over 65% global market share in raw jute and jute goods exports
- Key products exported are sacking bags, hessian fabric, rugs and carpets.
18. Spices
- Total Export Share – 0.9%
- Total Export Value – US$ 4 billion (2021-22)
- Main Export Countries – USA, Bangladesh, UAE, Malaysia, Pakistan
- India has diverse agroclimatic zones supporting production of a wide range of spices – chilli, turmeric, cumin, nutmeg, ginger, fennel, etc.
- Rising demand for authentic Indian spices and value added products in food retail overseas has boosted exports.
19. Ayurvedic Products
- Total Export Share – 0.2%
- Total Export Value – US$ 0.8 billion (2021-22)
- Main Export Countries – USA, Kenya, Myanmar, Germany, Sudan
- India has an established domestic industry for ayurvedic medicines & products witnessing double digit growth.
- Increasing acceptance of alternative medicinal products has led to higher exports.
20. Aluminium Products
- Total Export Share – 0.3%
- Total Export Value – US$ 2 billion (2021-22)
- Main Export Countries – Bangladesh, USA, Germany, Iran, Indonesia
- India has seen a rapid rise in aluminium production capacity in past decade bolstering overseas shipments.
- Key exports include aluminium utensils, rods & bars, wire, plates, sheets & foils.
Top 20 Products to Export from India Summary:
| Sr | Product Name | Total Export Share % | Total Export Value | Main Export Countries |
|---|---|---|---|---|
| 1 | Rice | 5% | US$ 9 billion | Saudi Arabia, Iran, Iraq, UAE, Nepal |
| 2 | Meat and Seafood | 4.8% | US$ 8.62 billion | USA, China, Vietnam, Japan, Malaysia |
| 3 | Cotton Yarn | 2.6% | US$ 5 billion | China, Bangladesh, Vietnam, Pakistan, Turkey |
| 4 | Automobile and Components | 4% | US$ 19 billion | Mexico, South Africa, Sri Lanka, Indonesia, Chile |
| 5 | Diesel | 3% | US$ 21 billion | Singapore, France, Saudi Arabia, Indonesia, UAE |
| 6 | Sugar | 2% | US$ 4 billion | Indonesia, Somalia, Afghanistan, Sri Lanka, Sudan |
| 7 | Manmade Filament Fabrics | 1.7% | US$ 4 billion | Turkey, Italy, Bangladesh, Sri Lanka, Morocco, Vietnam |
| 8 | Organic Chemicals | 2% | US$ 7 billion | USA, China, Bangladesh, Germany, Brazil |
| 9 | Cereals | 1.5% | US$ 2 billion | Bangladesh, UAE, Yemen, Nepal, Saudi Arabia |
| 10 | Groundnuts | 1.7% | US$ 1 billion | Indonesia, Philippines, Malaysia, China, Egypt |
| 11 | Iron and Steel | 1.6% | US$ 18 billion | Nepal, USA, Bangladesh, S.Korea, Saudi Arabia |
| 12 | Electronics | 1% | US$ 15 billion | UAE, USA, China, Germany, Netherlands |
| 13 | Manmade Staple Fibers | 1.2% | US$ 2 billion | Turkey, Bangladesh, Sri Lanka, Brazil, Korea |
| 14 | T-Shirts | 1% | US$ 5 billion | USA, UK, UAE, Germany, France |
| 15 | Tea | 0.8% | US$ 1 billion | Russia, Iran, UAE, USA, UK |
| 16 | Ceramic Products | 0.8% | US$ 1 billion | USA, Nepal, Bangladesh, Australia, Germany |
| 17 | Jute Manufactures | 0.5% | US$ 0.3 billion | Bangladesh, Australia, Iran, Nepal, Egypt |
| 18 | Spices | 0.9% | US$ 4 billion | USA, Bangladesh, UAE, Malaysia, Pakistan |
| 19 | Ayurvedic Products | 0.2% | US$ 0.8 billion | USA, Kenya, Myanmar, Germany, Sudan |
| 20 | Aluminium Products | 0.3% | US$ 2 billion | Bangladesh, USA, Germany, Iran, Indonesia |
Conclusion
India offers enormous opportunities across diverse merchandise segments that hold strong prospects for exports in 2024 and beyond. While traditional exports like petroleum products, gems & jewellery, agriculture and textiles will continue to lead, newer areas like electronics, machinery, chemicals, plastics and automotive components are expected to drive future growth.
With supportive policies, trade agreements, infrastructure development and easing compliances, India’s exports are poised for robust long term expansion. Manufacturers and exporters focusing on quality, competitiveness and aligning with global demand have a conducive environment to boost outbound shipments.
