India's net exports are showing signs of revival as outbound shipments expand in 2024-25, following a contraction in the previous fiscal year, according to the Reserve Bank of India's (RBI) monthly bulletin released on Monday.
Excluding China, nine of India's top 10 export destinations, which account for roughly half of the country's total export value, are witnessing growing demand, the RBI noted.
The report highlighted a shift in India’s export basket towards electronics and engineering goods, as traditional exports such as gems and jewellery, textiles, garments, leather, and marine products lose competitiveness.
Business services, including consulting, engineering, research, and design, are rapidly emerging as India’s new export powerhouse, surpassing the software and information technology sector.
This category also encompasses services like advertising, public relations, logistics, accounting, auditing, architecture, and legal services. The growth is being driven by rising global demand for specialised services and the integration of services into manufacturing.
Global capability centres are playing a key role in this export growth, particularly in the evolution of business and knowledge process outsourcing, the report added.
According to data from the Commerce Ministry, the cumulative value of merchandise exports during April-July 2024 was $144.12 billion, reflecting a 4.15 per cent increase compared to $138.39 billion in the same period last year.
Electronic goods exports, including smartphones, surged by 37.31 per cent, from $2.04 billion in July 2023 to $2.81 billion in July 2024.
Engineering goods exports rose by 3.66 per cent, from $8.72 billion in July 2023 to $9.04 billion in July 2024, while exports of drugs and pharmaceuticals grew by 8.36 per cent to $2.31 billion during the same period.
The RBI report also highlighted improvements in India's logistics sector, with ports and shipping undergoing strategic infrastructure and technological advancements.
Port development is increasing cargo handling capacity and connectivity, and the use of RFID-based port access control is enhancing security and operational efficiency. Public-private partnerships are contributing to this growth.
Under the Sagarmala scheme, 90 of the 166 projects initiated at major ports have been completed, resulting in a capacity increase of over 230 million tonnes per annum.
Additionally, access to 100 per cent foreign direct investment (FDI) and a 10-year tax holiday is incentivising the development, maintenance, and operation of ports, the report noted.
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