India is one of the fastest growing economies in the world, with a GDP of $2.9 trillion in 2023. The country’s trade sector plays a vital role in its economic development, contributing to 43.7% of its GDP in 2023. India’s import export industry has witnessed significant changes and challenges in the past few years, due to the impact of the COVID-19 pandemic, geopolitical tensions, trade policy reforms, and changing consumer preferences. In this blog post, we will explore some of the key trends and opportunities that are shaping India’s import export industry in 2024.
One of the major trends in India’s import export industry is the diversification of its trade partners and products. India has been actively pursuing new markets and regions for its exports, such as Africa, Latin America, and Southeast Asia, while reducing its dependence on traditional partners like China, the US, and the UAE. India has also been expanding its export basket, with a focus on high-value and high-tech products, such as pharmaceuticals, engineering goods, electronics, and services. India’s trade diversification strategy aims to enhance its global competitiveness, reduce its trade deficit, and mitigate the risks of external shocks.
Another trend that is influencing India’s import export industry is the negotiation and implementation of free trade agreements (FTAs) with various countries and regions. India currently has 15 FTAs in force, covering 54 countries, and is in talks with several others, such as the European Union, the UK, Australia, and the Gulf Cooperation Council. FTAs offer India the opportunity to access new markets, lower tariffs, and increase trade flows, while also addressing the non-tariff barriers and regulatory issues that hamper its trade potential. FTAs also enable India to integrate with the regional and global value chains, and leverage the complementarities and synergies with its trading partners.
A third trend that is affecting India’s import export industry is the formulation and revision of its foreign trade policy (FTP). The FTP is a five-year policy document that outlines the vision, goals, and strategies of India’s trade sector, and provides various incentives and schemes for exporters and importers. The current FTP, which was supposed to expire in 2020, has been extended till March 2024, due to the disruption caused by the pandemic. The government is expected to announce the new FTP for 2024-29 soon, which will reflect the changing dynamics and challenges of the global trade environment, and address the needs and expectations of the stakeholders. The new FTP is likely to focus on promoting exports of high-priority sectors, such as agriculture, textiles, gems and jewellery, and leather, as well as enhancing the competitiveness and quality of India’s products and services.
A fourth trend that is transforming India’s import export industry is the adoption and innovation of digital technologies. The COVID-19 pandemic has accelerated the digitalization of trade processes, such as customs clearance, documentation, payments, and logistics, making them more efficient, transparent, and secure. India has also been developing and deploying various digital platforms and tools, such as the e-Sanchit, the ICEGATE, the GeM, and the Trade Receivables Discounting System, to facilitate and streamline its trade operations. Moreover, India has been leveraging the opportunities offered by e-commerce, social media, and online marketplaces, to expand its reach and access to new customers and markets.
India’s import export industry is undergoing a dynamic and exciting phase, as it adapts and responds to the changing global trade scenario. India has a huge potential to increase its trade performance and competitiveness, by capitalizing on the trends and opportunities discussed above. India’s import export industry can also contribute to the country’s economic recovery and growth, by creating jobs, generating income, and enhancing welfare.
We hope you find this blog post helpful. If you need any further assistance, please let us know. 😊
