How to Encourage Indian Exports in a Bleak Global Environment

Over the next few years, Indian businesses will work to increase their exports as nations diversify their supply chains and the government works to reduce the trade imbalance. There is a tonne of room for growth this decade because India still contributes a negligible amount to global trade.

According to Bain & Company, India's merchandise exports might increase from $418 billion in the fiscal year that ended in March 2022 to $1 trillion in 2028. Diversification, government programmes to support manufacturing in the nation, and increased investment in the industry all contribute to this.

The manufacturer of equipment for the oil and gas industry, Godrej Process Equipment, is one of the businesses attempting to take advantage of the opportunity. The Godrej Group, one of the oldest conglomerates in India, includes the business.

According to Hussain Shariyarr, senior vice president and business head of Godrej Process Equipment, "We have supplied to 36 nations so far and want to reach 40 by next year."

According to him, exports currently account for roughly 40% of the company's revenue, and the goal is to eventually raise that percentage to as much as 80%.

Godrej has invested in expanding its manufacturing facilities in Dahej, in the western state of Gujarat, to assist increase its exports. Also, get US Imports Data.

The company has improved its capacity and capabilities to concentrate on and broaden its global footprint, according to Mr. Shariyarr, who also notes that while the pandemic caused a decline in the company's exports, international business is now rebounding.

"We are gradually gaining more export business," he claims, citing the likelihood of significant international projects in the Middle East and America. 

According to Bain & Company, items including chemicals, medicines, electronics, automobiles, and textiles will be important drivers of India's export growth along with industrial machinery.

Bain's research reveals that despite being the world's fifth-largest economy and S&P Global Ratings' projection that it will surpass Germany and Japan to take the third position by 2030, India's export contribution to global commerce is only 1.6%.

India has been pursuing free trade agreements as part of its commercial expansion initiatives. In order to increase exports of goods including textiles, food, and jewellery, New Delhi is currently negotiating a free trade agreement with the UK. The free trade agreement between the South Asian nation and Australia will take effect on December 29.

A Comprehensive Economic Partnership Agreement between India and the UAE was inked earlier this year with the intention of boosting bilateral commerce in products to more than $100 billion in five years.

The Delhi-based Pansari Group has recently begun exporting its products, which include culinary items like wheat flour and edible oils.

The business currently exports its goods to more than 60 nations, including the GCC area, Canada, and Australia.

According to Shammi Agarwal, director of Pansari Group, "our experience this year has been mixed." We observed a significant increase in the number of wheat exports in the first two quarters as Russia ceased exporting wheat owing to its crisis with Ukraine. Later, the numbers decreased as a result of the government's prohibition on wheat exports.

In an effort to lower domestic costs this year due to heatwave-affected crops, the Indian government banned the export of wheat and wheat flour. According to Mr. Agarwal, several subsidies are currently being terminated and duty costs are being levied in order to regulate domestic food prices.

We anticipate that when these laws are changed by next year, exporters will benefit more and the number of exports will increase. He does, however, note that shifting government policies in India is one of the main obstacles faced by exporters. Seair Exim Solutions provides US Imports Data, Export to the USA and much more. It also enables you to acquire data on the top exporters, HS Codes; US Customs Data, etc. If you have any related queries. Please connect with our business professionals; they will assist you to expand your business in the global trade market.