Pharma, Gems and Jewellery, leather and footwear exports down

Share of India's exports in the world trade in sectors such as Pharma, Gems and Jewellery, leather, and footwear declined in 2022 as compared to 2015, according to a report by think tank   Global Trade Research Initiative.(GTRI).  However, there is an increase in the share of Electronics, Machinery, Petroleum, Auto parts, iron and steel, and Aluminum products' exports during the period.

"India's global market share in sectors like apparel, leather, shoes, and marine products has been decreasing, primarily due to concerns over quality rather than pricing issues," Global Trade Research Initiative (GTRI) Co-founder Ajay Srivastava  was quoted by media reports.

The report said that the key sectors that witnessed a higher share in global trade are electronics, telecom, mobile phones, and electrical equipment, as well as machinery. These product groups hold substantial importance in world trade, which exceeds USD 6 trillion.

"In 2022, India's share in global merchandise trade stood at 1.8 per cent. However, its share in machinery and electronics was a mere 0.75 per cent and 0.4 per cent, respectively in 2015. Over the course of seven years, there has been a marginal yet significant improvement in these shares," it said.

The report also stated that quality issues are not limited to pharmaceuticals but also affect Indian aquaculture products, such as shrimp and prawns. Many countries reject these products due to the presence of salmonella (a kind of bacteria), highlighting the need for a robust internal system. Ensuring thorough quality checks within India will prevent rejections in foreign countries, which tarnish the reputation of Indian products and lead to loss of orders.

Share of Gems and Jewellery dropped to 4.74 per cent in 2022 as against 7.47 per cent in 2015. Similarly, the share of fish and crustaceans; and leather items dipped to 4.52 per cent and 2.92 per cent in 2022 as against 4.77 per cent and 3.65 per cent, respectively in 2015, it said.