The year 2021-22 was an excellent year for the exports of India as there was a significant spike in the overall exports from India. Notably, the export value crossed the $400 billion mark almost after a decade. Different sectors equally contributed to realizing these numbers. The export numbers are essential for every nation as they contribute to economic growth and the country's profit margins. Over the years, India's exports have increased, resulting in significant economic growth. The crucial exports items from India include automobiles, pharmaceuticals, petroleum, Jewelry, etc.
To give you detailed information, we have this list of top products in high demand abroad, and these products bring a good business to the economy.
Handicrafts and traditional products from India are famous all over the world. When converted into Indian rupees, these products are less expensive. As a result, traditional handicraft is the best product for India to export. Furthermore, it is in high demand in other countries.
Handicraft art, furniture, and paintings are primary products exported from India. The U.S and U.K. have a massive demand for these Indian products.
These markets are ideal locations for these products to be sold both in-person and online. This industry requires very little capital and only a strong network of local artisans, resulting in a large profit margin when sold at higher prices in other countries.
In a nutshell, these handicrafts goods are one of the significant drivers of exports in India.
Leather products are one of the leading export items from India. Top products include jackets, boots, and bags.
These products are in high demand in India and abroad. Presumably, the reason is that they are highly durable and they will never go out of style. India is one of the world's largest leather producers, and leather exports from India are in high demand. In tandem with leather products, the need for faux leather products is also increasing abroad. If someone is looking for a quick export business idea, then Fashionable leather accessories are the ideal products and a fantastic export business idea. The United States, the United Kingdom, and Germany are the top importers of leather from India.
The Spices Board of India is dedicated to developing and international promotion of Indian spices. Spice farming quickly gains popularity among small landowners due to its low resource requirements and high-profit potential. India is already famous for its spice production, varieties, and export volume.
Our country currently exports more than 75 different types of spices worldwide, making them one of the major export items from India. The tropical and subtropical weather patterns in our country are crucial for the massive production of various spices. It performs quality control and certification, registers exporters, keeps track of trade data, and advises the federal government on policy. The spice board participates in major international fairs and food exhibitions to promote Indian spices and organize various domestic events.
India's tobacco industry is impressive and progressive, and the country's tobacco industry is an important commercial crop. It's becoming a more well-known and respected commodity in the global tobacco market, and it's now found in the cigarettes of several countries. India is the world's second-largest producer and exporter of tobacco.
Tobacco growers, traders, and exporters can benefit from this fact. Tobacco Board of India works to improve existing markets and develop new markets for Indian tobacco and tobacco products. The Board participates in international tobacco exhibitions and conducts brand-building exercises.
Indian gems and Jewelry:
India is adapting its traditional knowledge to modern techniques that are more in tune with global market trends. India's top gem and jewelry export destinations are the United States, Europe, Japan, and China. The United States exports nearly a quarter of all gems and Jewelry produced in the country.
The Indian gems and jewelry industry is one of the largest globally, accounting for around 29% of global jewelry consumption. Jewelry trade secrets have been passed down through the generations, ensuring the continuation of traditional craft. As a result, India is now the most significant diamond cutting and polishing center globally, and the Indian jewels have become one of the leading export items from India. The gems and jewelry industry employs over 300,000 people.
After China, India is the world's second-largest tea producer. India's top export markets include Russia, Iran, the United Arab Emirates, the United States, and China.
The Assam, Darjeeling, and Nilgiri teas are among the best globally, known for their strong flavors and intense aromas. The importance of India in the world has aided efforts to restructure the Indian tea industry and achieve the goal of providing high-quality tea to international consumers. Consumer purchasing habits have shifted as demand for herbal and organic teas has grown. People are increasingly looking for tea products made in India.
Due to higher international cotton prices than Indian cotton prices, India's exports of cotton and cotton products have steadily increased. The Indian textile has been one of the major export items from India owing to their quality and prices. The United States' ban on Xinjiang cotton has boosted demand for Indian cotton. Furthermore, to support the exports, The government of India increased the Merchandise Export from India Scheme (MEIS) rates from 4% to 6% to encourage the export of readymade garments and made-ups.
In 2021-22, India's exports surpassed $400 billion, with nearly $110 billion added. Exports increased by 37 percent on an annual basis in the current fiscal year, setting a new high. Exports are growing across the Board, with annual growth in nearly every category. The increase in exports cannot be attributed solely to higher prices because outbound shipments have increased across commodities. Electronic goods, organic and inorganic chemicals, and their share of total exports rose, though their percentage of total exports remained unchanged from FY20.
Exports of high-value finished goods exploded in FY22. Aside from the traditional export items, there was a slew of new export items from India. Since taking office, the government has pushed for labor-intensive manufacturing to boost productivity, job creation, and exports all at the same time.
After six years of attempting to replace industrial raw materials and agri-items with higher value chains products, India's export basket has become more diverse.