Indian Exporters Unlock New Markets Amid July Slump, Signaling Potential Revival Ahead

Despite India's goods exports contracting by 1.5 per cent in July to $33.98 billion, the lowest in eight months, Indian exporters have shown remarkable resilience by tapping into new markets.

This development signals the potential for a revival in outbound shipments in the months ahead.

For instance, India has successfully expanded its reach by exporting frozen peas to China, office equipment to Belgium and Sri Lanka, and light naphtha to Malaysia and the Philippines.

In 2023, Indian frozen peas managed to capture a 3.28 per cent share of the Chinese market, up from zero in 2022. Similarly, for the first time, India exported light naphtha worth $19.9 million to Malaysia and $39.84 million to the Philippines in FY24.

New destinations for office equipment exports emerged in Belgium and Sri Lanka, where there had been no presence.

India’s coffee exports also made significant inroads, capturing almost 9 per cent of the Italian market. Even as global coffee exports to Italy declined, India’s share surged by 39.7 per cent in FY24, while Brazil’s share fell by 13.59 per cent and Uganda’s by 8.66 per cent.

Additionally, exports of MRI apparatus to Germany grew fourfold in 2023, albeit from a small base.

“These are green shoots in markets where we were not present earlier,” said a trade official, as quoted by the Economic Times.

Although the absolute numbers are small, these exports have created opportunities for larger quantities in the future.

Exploring new products for export is crucial for India, especially in light of challenges such as high sea freight rates, protectionist measures from major export partners, and weak demand in some key markets, which collectively pulled India’s export growth to an eight-month low in July.

Nevertheless, Indian exporters have demonstrated their ability to compete successfully in many markets.

As more free trade agreements are signed, additional opportunities will emerge. For example, motor spirit exports to Australia have increased following the signing of a trade pact between the two countries.

"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).