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BUSINESS EYE JANUARY 03, 2025 | The Indian Eye 38

YEAR-ENDER 2024

Trade pacts and new markets contribute to

robust export growth from India in 2024

India’s share in global merchandise exports rose from 0.9% in 2005 to 1.8% in

2023, while its share in services exports more than doubled from 2% to 4.3 %

OUR BUREAU

New Delhi
ndia is enhancing trade through FTA agree-
ments and leveraging them to ensure certainty
Iin market access, non-discriminatory treatment
and a transparent and objective regulatory environ-
ment for services exports.
Trade agreements and forays in the new mar-
kets have contributed to robust export growth in
2024, according to Year End Review of the Depart-
ment of Commerce.
India has bilateral trade agreements, including
Trade in Services, with Singapore, South Korea, Ja-
pan, Malaysia, Mauritius, UAE, Australia and an
FTA in services and investment with the Association
of South East Asian Nations (ASEAN). The India-
EFTA Trade and Economic Partnership Agreement Overall, India’s export share grew from 1.2 per cent in 2005 to 2.4 per cent in 2023 (Agency photo)
(TEPA) was signed in March 2024.
India is engaged in FTA negotiations including panding into new areas. During April-October 2024 tional Stock Exchange (NSE).
in Trade in Services with the UK, the EU, Oman, the agricultural and allied products exports were The report revealed that India’s share in global
Peru, and Sri Lanka. India is also engaged in negoti- USD 27.84 billion as compared to USD 26.90 billion merchandise exports rose from 0.9 per cent in 2005 to
ations on a Comprehensive Economic Cooperation in April-October 2023. 1.8 per cent in 2023, while its share in services exports
Agreement (CECA) with Australia building upon Basmati rice exports increased from USD 4.8 more than doubled from 2 per cent to 4.3 per cent.
the market access commitments in Trade in Ser- billion to USD 5.8 billion, and non-basmati rice Overall, India’s export share grew from 1.2 per
vices under India- Australia Economic Cooperation exports from USD 2.9 billion to USD 4.6 billion. cent in 2005 to 2.4 per cent in 2023. This growth has
Trade Agreement (ECTA). In April-October 2024, the exports of basmati rice been driven by factors such as robust trade agree-
“India is leveraging its FTA engagements to were USD 3.38 billion as compared to April-Octo- ments, a diversified export portfolio, improved lo-
achieve these goals by ensuring certainty in market ber 2023 when they were USD 2.96 billion, register- gistics infrastructure, and government initiatives
access, non-discriminatory treatment and a trans- ing a growth of 14.28 per cent. like the Make in India campaign and the Produc-
parent and objective regulatory environment, for Meanwhile, India’s contribution to global trade tion-Linked Incentive (PLI) scheme.
our Services exports,” an official release said. has seen significant growth over the last two decades, It also said “India’s performance in services exports
Apart from the above trade agreements, India with its share in both exports and imports doubling better than goods: India ranks 16th globally in mer-
has initiated various other bilateral and multilateral during this period, according to a report by the Na- chandise exports and the seventh in services exports
trade agreements in goods and services with various
countries and associations. INDIA’S DEFENSE EXPORTS TOUCH NEW HIGH
Discussions were held on concluding the ASE-
AN India Trade in Goods Agreement (AITIGA) ndia’s defense exports continue to rise touch- defense equipment worth Rs 50,000 crore by 2029
ing a record Rs 21,083 crore (about USD 2.63
will be met.
Review negotiations by 2025. India’s total exports Ibillion) in the FY2023-24, a growth of 32.5 per The release said that to boost Aatmanirbharta
during April-October 2024 exhibited a positive cent over the previous fiscal when the figure was in defense and minimize imports by DPSUs, the
growth of 7.3 percent. Total exports (merchandise Rs 15,920 crore. The figures indicated that the ex- Department of Defense Production in July no-
and services) during April-October 2024 stood at ports grew by 31 times in the last 10 years as com- tified the fifth Positive Indigenization List (PIL)
USD 468.5 billion as compared to USD 436.5 billion pared to FY 2013-14. consisting of 346 items.
during April-October 2023. “The defense industry, including the private The five lists for DPSUs are in addition to the
Total imports (merchandise and services)
during April-October 2024 stood at USD 531.6 bil- sector and DPSUs (Defense Public Sector Unde- five PILs of 509 items notified by the Department
takings), have made tremendous efforts in achiev-
of Military Affairs. These lists include highly com-
lion as compared to USD 496.5 billion in April-Oc- ing the highest-ever exports. The private sector plex systems, sensors, weapons and ammunition.
tober 2023, registering a growth of 7.1 percent. and DPSUs contributed about 60 per cent and 40 The release said the Defense Ministry
Agriculture, engineering, electronics, drugs and
pharmaceuticals were among sectors that showed per cent respectively,” the Defense Ministry said in achieved the highest-ever growth in Indigenous
healthy growth in exports. its year-end review 2024. defense production in value terms during 2023-24,
on the back of the successful implementation of
It said that Defense Minister Rajnath Singh
India has strengthened its leadership in tradi-
tional exports with labor-intensive sectors while ex- has exuded confidence that the target to export the policies and initiatives of the government.

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