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From tiles to turbines: India's export evolution
20 Oct
Summary
- India's comparative advantage grew in 102 products by 2021-25.
- Gains seen in industrial inputs, chemicals, and engineering equipment.
- Electronics success is concentrated in smartphones, needing wider ecosystem.
India's export strengths have expanded, with the number of product categories showing comparative advantage increasing to 102 in 2021-25 from 87 in 2011-15. While traditional sectors like rice, spices, and seafood remain strong, new advantages have emerged in industrial inputs, chemicals, and engineering equipment.
The automotive sector sees growth in auto components, though passenger cars lag. Textiles show a mixed picture, with strengths in inputs but declining specialization in garments compared to competitors like Bangladesh and Vietnam.
Ceramics, particularly tiles, have seen a dramatic rise, with output nearly tripling to 2.4 billion square meters by 2024, largely driven by the Morbi cluster. Power and engineering equipment also show significant improvement, with 10 out of 12 categories now above the comparative advantage threshold.
Electronics exports, boosted by smartphone production, jumped significantly, but this success is concentrated in assembly, highlighting the need for broader electronic component manufacturing.
