India’s Goods Exports Diversify with Growth in Bananas, Ghee, and Solar PV Modules

India's export basket is witnessing a diverse range of products, including bananas, ghee, furniture, office stationery, and solar photovoltaic (PV) modules, contributing to the country's fast-growing overseas sales. While engineering goods, pharmaceuticals, gems and jewellery, and electronics remain the primary drivers of goods exports, these emerging sectors are providing the extra momentum.

A government official stated, "Banana is among the 20 agri-products we have identified for export growth, as India's share in their global exports is currently low."

Other products being targeted for increased exports include watermelons, guavas, green chillies, capsicum, okra, garlic, onions, and alcoholic beverages. India aims to raise its share in global exports to 4-5% in the coming years, up from 2.5% currently, with potential markets including the US, Malaysia, Canada, Russia, Germany, France, South Korea, China, Indonesia, Japan, Italy, Belgium, and the UK. The demand for Indian single malt whisky is also growing in the EU, US, and Far East, as noted by Anant Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC).

In addition, office stationery items like registers and diaries are gaining traction in countries like Nicaragua, El Salvador, and Cyprus. India's solar PV module exports have risen significantly, with the country now ranking as the sixth-largest exporter of solar PV modules, increasing its global export share to 2.51% in 2023, compared to 0.4% in 2013.

Exports of alcoholic beverages rose 8% year-on-year from April to October 2023, with whisky exports growing by 16%. The export of certain spices, including black pepper, is also seeing growth.

The government has identified new markets for specific sectors, such as France, Saudi Arabia, and Kenya for iron ore; Latvia, Chad, and Montenegro for drugs and pharmaceuticals; and Greece and Croatia for engineering goods exports. Emerging markets for India's cotton yarn include Guatemala and Morocco.

Despite a decline in goods exports by 4.83% in November, driven by falls in petroleum products, gems, and jewellery, iron ore, and fruits and vegetables, India is targeting over $800 billion in goods and services exports for FY25. Experts predict resilience in electronics, engineering goods, and the automotive sector, driven by the government's production-linked incentive (PLI) schemes and the global adoption of the China+1 strategy. India's apparel exports are also projected to maintain a positive trajectory.