NEW DELHI: India’s robust export growth in recent months have been driven by 80 products which made up for half of the total value of exports in the June quarter, according to estimates by the State Bank of India research team.

India reported record merchandise exports worth $95 billion in the first quarter of the current quarter, rising a massive 85% year-on-year and up 18% from the same period in FY20. The trend has continued in recent months, with exports in April-August period at $163.67 billion, up 67% compared to same period last year and 23% from the same period in FY20.

The SBI research found that individually, diamonds had the largest share at 6% in India's export basket, followed by diesel at 5%, during the June quarter for which disaggregated data is available.

“If we sort these 80 items into broad categories, they are petroleum and energy, gems and jewellery, agri, fishery, meat and allied, chemicals and pharma, metals and products and transport equipment including auto, ships, rail and airplanes. At 2-digit category these products span across 32 2-digit classifications. If we go back to Q1 FY 2012-13, and aggregate the number of products with 50% share there are only 20 HS-2 categories. Thus, diversification has taken place," it added.

SBI said chemicals and pharmaceuticals, metal products, textiles, machinery, plastics and rubber and their articles and furniture have been grabbing more share in exports though core base remains in the form of gems and jewellery and petroleum products. 

“Certain agri based products like residues and wastes from food industries, animal fodder, coffee, tea, mate and spices and labour intensive products like carpets and footwear have exited the top commodity export list. Meanwhile, certain components like aluminum and articles thereof and ships, boats and floating structures exports have grown rapidly and are now part of the top exports. There are certain other products which started with a very low base but have shown rapid growth like furniture, parts of aircraft and space craft and zinc and at 8-digit level are now part of the top 50% exports," SBI said.

Soumya Kanti Ghosh, group chief economic adviser at the State Bank of India, said the recent trend in exports gives hope that exports growth will see a positive momentum in the coming years. 

“However, it has to be kept in mind that the primary engine of growth for India remains consumption and unless that improves it is difficult for India to achieve double digit growth. Also, booming commodity prices have contributed to the stellar growth being displayed by India's merchandise exports. Base metals and petroleum products have been some of the major contributors to the exports registered by India. The commodity cycle needs to be watched carefully and diversification is needed to mitigate the risk of falling commodity prices to meet the $400 billion export target in FY22," he added.

NEW DELHI: India’s robust export growth in recent months have been driven by 80 products which made up for half of the total value of exports in the June quarter, according to estimates by the State Bank of India research team.

India reported record merchandise exports worth $95 billion in the first quarter of the current quarter, rising a massive 85% year-on-year and up 18% from the same period in FY20. The trend has continued in recent months, with exports in April-August period at $163.67 billion, up 67% compared to same period last year and 23% from the same period in FY20.

The SBI research found that individually, diamonds had the largest share at 6% in India's export basket, followed by diesel at 5%, during the June quarter for which disaggregated data is available.

“If we sort these 80 items into broad categories, they are petroleum and energy, gems and jewellery, agri, fishery, meat and allied, chemicals and pharma, metals and products and transport equipment including auto, ships, rail and airplanes. At 2-digit category these products span across 32 2-digit classifications. If we go back to Q1 FY 2012-13, and aggregate the number of products with 50% share there are only 20 HS-2 categories. Thus, diversification has taken place," it added.

SBI said chemicals and pharmaceuticals, metal products, textiles, machinery, plastics and rubber and their articles and furniture have been grabbing more share in exports though core base remains in the form of gems and jewellery and petroleum products. 

“Certain agri based products like residues and wastes from food industries, animal fodder, coffee, tea, mate and spices and labour intensive products like carpets and footwear have exited the top commodity export list. Meanwhile, certain components like aluminum and articles thereof and ships, boats and floating structures exports have grown rapidly and are now part of the top exports. There are certain other products which started with a very low base but have shown rapid growth like furniture, parts of aircraft and space craft and zinc and at 8-digit level are now part of the top 50% exports," SBI said.

Soumya Kanti Ghosh, group chief economic adviser at the State Bank of India, said the recent trend in exports gives hope that exports growth will see a positive momentum in the coming years. 

“However, it has to be kept in mind that the primary engine of growth for India remains consumption and unless that improves it is difficult for India to achieve double digit growth. Also, booming commodity prices have contributed to the stellar growth being displayed by India's merchandise exports. Base metals and petroleum products have been some of the major contributors to the exports registered by India. The commodity cycle needs to be watched carefully and diversification is needed to mitigate the risk of falling commodity prices to meet the $400 billion export target in FY22," he added.