India’s agricultural production has a long history. Products like grains, rice, wheat, cotton, spices are exported all over the world. Rice is a major component of India’s exports, with basmati rice being particularly popular. In 2022-23, India exported rice worth $8.82 billion, accounting for about 40% of the world’s total rice exports.
Opportunity
There are many opportunities in the export of Indian agricultural products. For example, the demand for organic products is increasing worldwide. Indian farmers are increasingly turning to organic farming, which is leading to an increase in exports of high quality and high value products. In addition, Indian spices such as turmeric, pepper, and coriander are popular worldwide. Greater attention to the quality of spices can strengthen India’s grip on international markets.
The Spices Board of India is working to ensure the quality of Indian spices and establish their identity in the global market. This could give a major boost to the spice industry in India.
Challenge
The lack of proper use of technology and lack of proper equipment hinder the export of agricultural products from India. Due to low awareness of technology among farmers and exporters, both the quality and quantity of the produce declines.
In addition, supply chain constraints and transportation issues make it difficult to deliver products on time. For example, this problem is particularly noticeable when exporting fresh fruits and vegetables. This causes difficulties for farmers and exporters.
2. Textiles and Garment Industry
Historical background of Indian textile exports
The history of the Indian textile industry dates back thousands of years. In ancient times, Indian textiles were traded all over the world. Even today, the Indian textile industry is a major industry in the world, exporting cotton, silk, polyester and handloom fabrics.
In 2022, the Indian textile industry exported about $44.4 billion, with handlooms and textiles accounting for a large share.
Opportunity
There are many opportunities in the Indian textile industry. Under the ‘Make in India’ initiative, there is a huge support for the export of textiles manufactured in India. Indian handloom products and silk fabrics are in great demand in the international market.
The Indian textile industry is known worldwide for its innovative designs, high quality and cost-effective manufacturing. According to Invest India, there is potential for further investment in this sector, which is likely to boost exports.
Challenge
However, Indian textile exporters face stiff competition in the international market. Competition from cheaper producing countries poses a major challenge in keeping Indian textiles competitive.
Additionally, the Indian textile industry has to make significant improvements to meet environmental regulations. The environmental impacts are taken into account in the production process, which can lead to additional costs for the industry.