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From spices to steel to drugs, India's exports are being hammered

From spices to steel to drugs, India's exports are being hammered
India's path to becoming a developed country hinges on boosting exports, as demonstrated by China's growth. Leveraging bilateral agreements and FTAs, India is expanding into new markets like Africa and Latin America. Yet, quality issues and trade restrictions pose challenges, such as recent bans on Indian spices in Hong Kong and Singapore. Additionally, green trade barriers like the EU's CBAM could impact key sectors like steel, potentially affecting Indian exports to the EU. Strengthening regulations and meeting global standards are crucial for India to realize its export potential.

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India's exports are experiencing a surge in various sectors, including precious metals, minerals, automobiles, electronics, pharmaceuticals, organic chemicals, textiles, spices, and defense equipment. The implementation of initiatives such as Production-Linked Incentives (PLI) and the Make in India campaign has fueled export growth, particularly in electronics. However, India is facing challenges in the form of quality and trade restrictions, with recent bans on Indian spice brands in Hong Kong and Singapore due to contamination. The country is also facing issues in the pharmaceutical industry, with lax regulation and poor manufacturing practices leading to concerns about the quality of Indian medicines. Additionally, green trade barriers, such as Europe's Carbon Border Adjustment Mechanism (CBAM), are posing a threat to Indian exports, particularly in sectors like steel and aluminum. The country is also facing challenges in the diamond industry, with buyers in the US and Europe demanding source declarations for diamonds. Overall, India is navigating a complex landscape of opportunities and challenges in its export industry.