Exports of frozen peas to China, office equipment to Belgium and Sri Lanka, and light naphtha to Malaysia and the Philippines are some of India’s new market access wins, paving the way for a possible revival in outbound shipments.
The country made inroads in these products with Indian frozen peas capturing a 3.28% share of the Chinese market in 2023 from zero in 2022. “These are green shoots in markets where we were not present earlier,” said an official. Though absolute numbers are small, these exports have opened up opportunities for bigger quantities later.
India’s coffee captured almost 9% of the Italian market and there was a fourfold on-year growth in MRI apparatus exports to Germany in 2023, albeit on a small base.
Similarly, India for the first time exported light naphtha worth $19.9 million to Malaysia and $39.84 million to the Philippines in FY24.
Belgium and Sri Lanka emerged as new destinations for office equipment export, up from nil earlier.
Finding new items to sell overseas is crucial as muted global demand, geopolitical challenges and a drop in crude, commodities and metal prices dragged India’s goods export growth to an eight-month low in July, with outbound shipments contracting 1.47% to $33.98 billion.
While global exports of coffee to Italy fell, India’s share rose 39.7% on-year in FY24. Brazil’s fell 13.59% and that of Uganda dropped 8.66%.
“There was demand for these products and we have managed to capture markets there. We are able to compete very well in most markets,” said another official, adding that more products will find ground as free trade agreements are inked.
Motor spirit was one such export to Australia after the country signed a trade pact with India.
India, which is the top import source for dried onions in Brazil, had an 82% share in 2023 worth $20 million, up from 73% in 2022 at $17 million. Similarly, antibiotic exports to Italy doubled in the period.
“Indian exporters have been able to capture the markets wherever they saw opportunities. Both new and existing markets are throwing up new opportunities,” said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO).
In the case of MRI machines to Germany, India’s exports rose 54% in FY24. Other areas may need a greater push.
“In cashew nuts, domestic consumption is growing, leaving a lower exportable surplus. That’s something we need to work on,” said the second official.
