For the longest time, the US and the EU were the largest market for Indian exports. But ever since the COVID outbreak, order numbers from them have lowered.
In the past year, Indian exports have found a bigger market in Africa and Latin America, especially Brazil.
The South African market has grown four times in the last decade and a half.
Automobiles and Pharmaceuticals are among the major products which are exported from India.
Pharmaceutical exports have increased by 33% to USD 375 mn in 2020-21. And the number is going much higher.
China’s inability to export these goods during the pandemic situation has proved beneficial for India. It has taken over these markets very quickly. This will also help in the geographical diversification of products.
There is a 45.9% increase in exports since August 2021. It is now at USD 4.48 bn and is going even higher.
The increase in exports to these markets has made up for the shortage of demand from the larger markets.
This has uplifted our outbound shipments. They had almost slipped into contraction in the last couple of months.
Indian exports faced a 7.26% decline in 2020-21. Revenue went down by USD 290.63 bn. But this fiscal year saw an 85% growth over the last.
The revenue for the first quarter of this fiscal year was recorded at USD 95 bn. It is the highest ever export value.
The increased exports between these two countries have strengthened their economic and strategic ties. It has also opened new avenues for more businesses.
India exports transport equipment, engineering goods, footwear and dyes, gems, and jewelry to Africa.
India’s position in the exports market has consolidated in recent times despite the advanced markets being less active and an increase in the demand for low quality products.