US Emerges As Key Market For Indian Exports, Contributing 18 pc In FY24

New Delhi, Dec 14 (KNN) India's export relationship with the United States has demonstrated remarkable resilience and growth over the past three decades, according to a comprehensive report by Bank of Baroda. 

The analysis reveals that exports to the US have reached USD 77.5 billion in the fiscal year 2024, representing a consistent compound annual growth rate of 10.3 percent since the early 1990s.

The export dynamics have not been without challenges. Following India's economic reforms in 1991, the export trajectory showed promising growth, with the United States emerging as a critical market. 

The country's share of India's total exports peaked at 22.8 percent in the financial year 2000, before experiencing a significant decline during the global financial crisis. 

The nadir came in fiscal year 2011, when the US accounted for merely 10.1 percent of India's exports.

However, the past decade has witnessed a remarkable recovery. As of fiscal year 2024, the United States now represents 18 percent of India's total exports, signaling a steady resurgence. 

The growth has been particularly notable in strategic sectors, with the top five export commodities—drugs and pharmaceuticals, pearls and precious stones, petro products, telecom instruments, and ready-made garments—collectively constituting 40 percent of exports to the American market.

Certain industries demonstrate particularly strong ties with the US market. Sectors such as drugs and pharmaceuticals, pearls and precious stones, telecom instruments, and ready-made garments have over 30 percent of their turnover directly linked to the United States. 

Interestingly, industries like carpets, electronic products, yarn, and marine products also show significant export potential, despite their relatively smaller overall export volumes.

The Bank of Baroda report, while highlighting the robust growth, also offers a note of caution. It recommends that India should continue to diversify its export markets to mitigate risks associated with overdependence on a single destination. 

This strategic advice comes amid evolving global political and economic landscapes, emphasising the importance of maintaining a flexible and adaptive export strategy.

As India continues to strengthen its economic ties with the United States, the export relationship remains a critical component of the bilateral economic engagement, promising continued growth and opportunities for both nations.

(KNN Bureau)