Rajesh, a small business owner from Chennai started exporting handicrafts two years ago. Since Indian handicrafts are in great demand in the outside world, gradually Rajesh turned his small workshop into a thriving export business, reaching customers in the US and Europe. Rajesh’s story is a testament to the love for traditional Indian art in overseas countries and also throws light on the potential of Indian small businesses in the global market.
Apart from Indian handicrafts, the top high demand Indian goods that are in high demand abroad include leather products, cereals, jewellery, spices, tobacco, and more. Export of these products to other countries contributes to the Indian GDP growth as they bring in more revenue from foreign countries. ‘Apart from Indian handicrafts, the top high-demand Indian goods that are in high demand abroad include leather products, cereals, jewellery, spices, tobacco, and more. Export of these products to other countries contributes to the Indian GDP growth as they bring in more revenue from foreign countries.
India’s current account deficit (CAD) eased to 1.2% of GDP at $10.5 billion in the October-December quarter, thanks to higher service exports. The CAD stood at $11.4 billion translating to 1.3% of GDP in the preceding quarter.
At $71.6 billion, the merchandise trade imbalance was somewhat larger than the $71.3 billion from the previous comparable quarter. Notably, India has experienced a significant drop in its merchandise exports lately. During this period, the country’s services exports rose by 5.2% on a year-on-year (YoY) basis on account of rising exports of software, business, and travel services. The main destinations for Indian exports are the US, the UAE, the Netherlands, Bangladesh, the UK, and Germany.
Prime Minister Narendra Modi’s government has set an ambitious export target of $2 trillion by 2030, offering benefits to boost exports of electronics, engineering, pharmaceutical, and other goods. A widening trade deficit is generally considered negative for a country’s growth as it reflects that its imports exceed exports means that the company is spending more than it is earning through the export of goods and services.
India’s export of goods and services witnessed a jump of 0.4% at $765.6 billion despite global economic uncertainties in 2023. The key sectors that helped keep India sail through include electronics, pharmaceuticals, cotton yarn, fabrics, ceramic products, meat, dairy, and poultry products, fruits and vegetables and information technology.
In the last few years, Indian exports have witnessed healthy growth on account of a surge in exports of software, mobile exports, and agricultural and petroleum products.
It is imperative for India to prioritize boosting exports, particularly of merchandise to boost its forex earnings. By focusing on increasing merchandise exports, especially in areas where it has supply-side capabilities i.e. textiles, leather, pharma, processed food, marine, handicrafts, and handlooms, etc., India can work towards achieving higher economic growth.
Besides, India should also focus on diversifying export destinations to reduce its reliance on specific countries.
In this article, we have brought you top high demand Indian goods that are in very popular abroad. These items include:
Top high demand Indian goods to export:
Handicrafts
Indian Handicrafts are in high demand across all over the world. The US and UK have a huge demand for Indian products including Handicraft art, furniture, and paintings. Not only these handicrafts are unique in design but they are also cheap when converted into Indian rupees.
Thus, any investment or initiative by the government to encourage the traditional handicraft sector will increase their demand in the international market. With a high value-addition ratio, little capital investment, and significant export potential, the handicraft sector is economically viable.
Key points to note:
- India is a major exporter of handicrafts and a dominant player in the handmade carpet market in terms of both volume and value.
- During April-September 2023, the total exports of handicrafts stood at Rs. 14,791 crore (US$ 1.77 billion).
- Major goods exported by India are handmade woolen, woodwares, embroidered & crocheted goods, art metal ware, hand-printed textiles & scarves, agarbatties & attars, zari & zari goods, and imitation jewelry.
- Demand for Indian handicraft products has constantly been increasing in foreign markets due to their individuality and great beauty. The major handicraft export destinations for India were the USA, the UAE, the UK, Germany, the Netherlands, and France.
Leather Products:
The leather industry is among the top ten foreign exchange earners in India. Indian cattle & buffalo population constitute 20% and the goat & sheep population of the country accounts for 11% of the world’s total. This places India in a dominant position when it comes to the availability of affluent raw materials.
There are four main leather sectors in India: Tanning, Footwear, Leather Garments, and Leather garments and Accessories. The country accounts for almost 13% of the total leather production in the world. India is also the second-largest producer and consumer of leather footwear.
India is the world’s second-largest exporter of leather clothing, third-largest exporter of saddlery and harnesses, and fourth-largest exporter of leather items, according to the IBEF website. In 2021–2022, the apparel industry accounted for 7% of all leather exports from the nation.
With an export value of US$ 649.92 million, footwear (leather, footwear components, and non-leather footwear) accounts for the majority of the exports of leather and leather products, with a 54.12% share.
India exports leather to over 50 countries. The top importers of leather and leather products from India are the US, Germany, the UK, Italy, France, Spain, Netherlands, China, Belgium, UAE, Australia, Poland, Hong Kong, Denmark, Canada, Vietnam, and Portugal. The top 15 countries account for about 80% of the total exports. India’s top importer of leather goods is the US.
Spices:
India is the largest spice producer in the world and also the largest exporter of spices. The production of different spices has increased dramatically in the last few years. During 2022-23, the export of spices from India stood at US$ 3.73 billion, according to information available on the IBEF website.
India produces around 75 of the 109 varieties listed by the International Organization for Standardization (ISO). The most produced and exported spices are pepper, cardamom, chili, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg & mace, curry powder, spice oils and oleoresins.
In 2022–2023, India exported $3.73 billion worth of spices. China, the United States, Bangladesh, Thailand, the United Arab Emirates, Sri Lanka, Malaysia, the United Kingdom, Indonesia, and Germany were the major importers of Indian spices.
Tobacco:
India is the world’s second-largest producer of tobacco after China and the world’s second-largest exporter after Brazil. It exports a wide range of tobacco products, including unmanufactured tobacco, FCV tobacco, stripped, fully stemmed, cigar cheroots, smoking tobacco, homogenized, flue-cured, sun-cured, extract and essence, and tobacco in various forms.
The nation’s top international destinations for tobacco exports include Belgium, the Philippines, Egypt, the Arab Republic, Germany, Nepal, the United States, and Turkey. With over 17% of all tobacco exports from India, Belgium is the largest importer of tobacco among these nations.
Agricultural Products:
India is one of the largest exporters of agricultural products in the world. In April-August 2023, the overall value of export of agricultural products stood at US$ 19.74 billion compared to US$ 22.72 billion in the prior corresponding period.India’s agricultural exports were valued at US$52.50 billion in 2022–2023. India’s agriculture sector primarily exports agri & allied products, marine products, plantation, and textile & allied products.
Rice is the largest exported agricultural product from India followed by sugar, spices, buffalo meat, wheat, and Coffee among others. The largest importers of India’s agricultural products, as of 2022-23, were the USA, China, Bangladesh, UAE, Vietnam, Saudi Arabia, Indonesia, and Malaysia.
The Indian government has undertaken various initiatives to promote exports of agricultural products. Some of these initiatives include the Agriculture Export Policy 2018 (AEP), the Financial Assistance Scheme (FAS), the Trade Infrastructure for Export Scheme (TIES), the Market Access Initiatives (MAI) Scheme, etc.
Pharmaceutical Products:
In a major feat, India’s Drug and Pharmaceutical products exports rose by a whopping 125% from Rs. 90,415 Crore in 2013-14 to Rs. 2,04,110 Crore in 2022-23. Drugs and Pharmaceuticals exports constitute 5.71 % of the total exports from India. The top five destinations of Indian pharmaceutical exports include the USA, Belgium, South Africa, the UK, and Brazil. India is also the largest provider of generic medicines globally.
India also accounts for 60% of global vaccine production making it the world’s largest vaccine producer in the world. For small businesses looking to make a mark in the export world, the pharmaceutical sector presents lucrative opportunities. India’s reputation as the ‘pharmacy of the world’ hub can provide a competitive edge to businesses venturing into this sector.
Conclusion
Before diving into exports, it’s crucial to understand your target market. Research the demand for your product, cultural preferences, and local regulations. Networking with other exporters and participating in trade fairs can also provide valuable insights and connections.
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