As a steadily growing economy in the east, the Indian economy is considered the world’s 16th largest exporter. India has exported USD 27.96B and imported USD 27.80B worth of goods and services in 2020 with a USD 0.16B trade surplus. In the current FY, the exports and imports are expected to grow to 6.9% each, with a trade deficit of USD 177.0B for merchandise.
India’s BRIC economics is considered one of the rising national economies and helps become a developed country. In 2020, India’s major exports declined, including gems, jewelry, textiles, rice, handlooms, and many more. According to the World Trade Organization, countries will see a rise of 7.6% of trade in 2021. Let’s explore more about major exports and imports from and to India:
What Includes India’s Top Exports List?
The top 10 exports from India contribute to over 59% of its global exports. Over the past 5 years, India has seen dramatic growth in exports. Whether it is textile or rice exporters, the surge in demand is seen by everyone previously. Certainly, rice exports from India are expected to rise by 6% in the upcoming year. Some of the major exports from India include the following:
- Refined Petroleum
India exported about 2.9 Trillion rupees of petroleum products in the Fiscal year 2020. As compared to the previous year, there was a decrease in the value of exports by 17%. At the start of the pandemic, petroleum exports were declined, but in October 2020, the economy saw a prominent rise in trade.
- Drugs & Pharmaceuticals
India’s Drugs & Pharmaceuticals export in FY 2020 was over 1.4 trillion rupees. Amidst the pandemic, healthcare was the only sector that has seen an increase in trade than the previous year. One of the largest providers of generic medicines was India. Due to this very reason, India has seen a hike in exports of drugs and pharmaceuticals.
Diamond exports have been worse affected in the past year. They have slimed by over 35 % through September. Although, India’s diamond exports contribute 20% to the world diamond exports.
75% of the world’s gem and jewelry exports are from India. It employs over 4.6 million people and contributes to 7% of the country’s GDP. It is one of the fastest-growing sectors, which is expected to rise double by the end of 2022.
- Basmati & Non-Basmati Rice
According to the All India Rice Exporter Association, India has exported over 7 million tonnes of non-basmati rice in 2020 and is expected to double this year. In the last quarter of 2020, the rise of 159% is seen in rice exports from India.
The major commodities exported from India also include iron, steel, cotton, aluminum, and precious stones. The majority of Indian exports are destined to the United States, Germany, China, UAE, and Hong Kong.
What Are India’s Most Imported Commodities?
As a developing country, India imports several commodities from countries around the globe. One of the most imported commodities is crude oil, which contributes USD 122 Billion in the import amount. Other commodities include gold, diamonds, petroleum gas, and coal. Here are some of the majorly imported commodities in India:
Gold imports in India have seen a decline of 47%, which is said to be an impact of the Coronavirus outbreak. Being one of the largest gold importers worldwide, the country imports about 800-900 tonnes of gold every year.
- Coal Briquettes
India is one of the top importers of Coal and spends about billions of dollars every year. Out of all the internationally traded commodities, Coal Briquettes are considered the 16th largest traded product.
India imports telephones in higher numbers than its exports, which is roughly about 36 million units. These imports are likely to decile in the upcoming years due to the proliferation of many big telephone producing companies.
- Broadcasting Equipment
The imports of broadcasting equipment valued at 7.42 Billion in FY 2020. The top importer in these commodities categories is the United States.
In order to survive in the unexpected economy, India has been following a robust approach. The major exports from India are viable, and some commodities like basmati rice, petroleum have seen a spike from the past five years.