India's Merchandise and Service Exports Expected to Reach Over $800 Billion by 2024: GTRI Insights
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New Delhi, Jan 1 (NationPress) India's overall exports of goods and services for 2024 are anticipated to exceed Rs 69,58,886 crore ($814 billion), reflecting a 5.58 percent rise compared to the previous year's figure of Rs 65,69,907 crore ($768.5 billion), as reported by the Global Trade Research Initiative (GTRI).
This expansion is propelled by a significant 10.31 percent increase in service exports, projected to reach Rs 31,82,793 crore ($372.3 billion), while merchandise exports are set to grow at a more modest 2.34 percent to Rs 37,74,384 crore ($441.5 billion) amidst ongoing global geopolitical tensions, including the Israel-Hamas conflict and the Ukraine-Russia war.
The analysis sheds light on the evolving export dynamics of India, where high-value sectors such as electronics and machinery have increasingly occupied a larger segment of the export portfolio since 2014, in contrast to traditional sectors like garments and textiles, which are experiencing a downturn.
According to Ajay Srivastava, founder of GTRI, "These trends highlight India's enhancing capabilities in higher-value industries, which is a crucial transition for ensuring long-term export sustainability."
Industries such as machinery and electronics are gaining traction, with the proportion of machinery in the export composition increasing to 6.9 percent in 2024 from 3.8 percent in 2014, and electronics rising to 7.9 percent in 2024 from 3.3 percent in 2014, based on the report's findings.
In stark contrast, textiles and garments, which represented 21.1 percent of exports in 2004, now account for merely 8 percent, with gems and jewellery experiencing a decline from 16.9 percent in 2004 to 7.5 percent in 2024.
The reduction in traditional sectors such as textiles, garments, and gems and jewellery is attributed to shifts in global demand and increased competitiveness challenges faced by labour-intensive industries.
Indian exports encounter hurdles amid sluggish global trade growth, stemming from slow economic recovery in developed regions and ongoing geopolitical strife. Additionally, disruptions in shipping routes due to attacks in the Red Sea area present further risks to export activities.
