Analysis of India’s top 25 commodities exported in the Financial year 2024. India’s exports have shrink 3% year on year. India’s exports stood at $ 437 billion, 3% less than the previous year. In FY 2023, India’s export was USD 451 billions.
Conversion to USD Million
Using the exchange rates:
- FY 2023: 1 INR crore = 1,00,00,000 INR ÷ 82 = 1,21,951 USD ? 0.122 million USD
- FY 2024: 1 INR crore = 1,00,00,000 INR ÷ 83 = 1,20,482 USD ? 0.120 million USD
Now, converting the given data (in INR crores) to USD million:
India’s top 25 commodities exported in FY24
| S.No. | Commodity | FY 2023 (INR Cr) | FY 2023 (USD Mn) | FY 2024 (INR Cr) | FY 2024 (USD Mn) | % Growth |
|---|---|---|---|---|---|---|
| 1 | Mineral Fuels, Mineral Oils, etc. | 1,01,241.86 | 12,351.44 | 87,602.38 | 10,554.48 | -13.47 |
| 2 | Electrical Machinery and Equipment | 28,608.57 | 3,490.31 | 34,412.52 | 4,145.48 | 20.29 |
| 3 | Natural or Cultured Pearls, Precious Stones, etc. | 38,112.48 | 4,650.30 | 32,853.10 | 3,957.00 | -13.80 |
| 4 | Nuclear Reactors, Boilers, Machinery, etc. | 27,476.77 | 3,352.29 | 30,057.07 | 3,621.33 | 9.39 |
| 5 | Pharmaceutical Products | 19,861.87 | 2,423.40 | 22,105.85 | 2,662.17 | 11.30 |
| 6 | Vehicles Other Than Railway or Tramway Rolling Stock | 21,219.87 | 2,589.01 | 20,889.30 | 2,516.77 | -1.56 |
| 7 | Organic Chemicals | 21,377.36 | 2,608.22 | 20,311.50 | 2,446.57 | -4.99 |
| 8 | Iron and Steel | 13,397.48 | 1,634.08 | 11,859.36 | 1,428.84 | -11.48 |
| 9 | Cereals | 13,860.62 | 1,690.32 | 10,994.03 | 1,324.58 | -20.68 |
| 10 | Articles of Iron or Steel | 9,811.95 | 1,196.82 | 9,939.10 | 1,197.48 | 1.30 |
| 11 | Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted | 8,493.98 | 1,035.85 | 7,804.44 | 940.05 | -8.12 |
| 12 | Aluminium and Articles Thereof | 8,849.97 | 1,079.26 | 7,651.25 | 921.83 | -13.54 |
| 13 | Plastic and Articles Thereof | 7,674.94 | 936.21 | 7,381.30 | 889.31 | -3.83 |
| 14 | Cotton | 5,663.55 | 690.92 | 6,780.81 | 816.97 | 19.73 |
| 15 | Articles of Apparel and Clothing Accessories, Knitted or Crocheted | 7,710.15 | 940.26 | 6,740.59 | 812.12 | -12.58 |
| 16 | Miscellaneous Chemical Products | 7,876.95 | 960.60 | 6,577.08 | 792.41 | -16.50 |
| 17 | Fish and Crustaceans, Molluscs, etc. | 6,823.40 | 832.37 | 6,124.21 | 737.85 | -10.25 |
| 18 | Other Made-Up Textile Articles; Sets; Worn Clothing | 5,657.64 | 690.20 | 5,586.20 | 673.03 | -1.26 |
| 19 | Optical, Photographic, Cinematographic, Measuring Instruments, etc. | 4,792.44 | 584.69 | 4,990.43 | 601.26 | 4.13 |
| 20 | Coffee, Tea, Mate, and Spices | 4,148.86 | 506.20 | 4,738.58 | 570.91 | 14.21 |
| 21 | Rubber and Articles Thereof | 4,685.48 | 571.40 | 4,575.93 | 551.31 | -2.34 |
| 22 | Ores, Slag, and Ash | 2,185.34 | 266.63 | 4,267.07 | 514.10 | 95.26 |
| 23 | Ships, Boats, and Floating Structures | 4,035.27 | 492.35 | 4,059.52 | 489.10 | 0.60 |
| 24 | Tanning or Dyeing Extracts; Dyes, Pigments, Paints, etc. | 3,311.58 | 403.85 | 3,983.33 | 479.92 | 20.28 |
| 25 | Meat and Edible Meat Offal | 3,273.35 | 399.31 | 3,832.60 | 461.76 | 17.08 |
Analysis
Overall Trends
- Decline in Major Sectors: The largest export category, Mineral Fuels, Mineral Oils, etc., saw a 13.47% decline, dropping from 12,351.44 USD million in FY 2023 to 10,554.48 USD million in FY 2024. This aligns with global oil price volatility and India’s efforts to diversify exports, as noted in trade reports from 2024.
- Growth in High-Value Sectors: Electrical Machinery and Equipment grew by 20.29%, from 3,490.31 USD million to 4,145.48 USD million, reflecting India’s push into electronics manufacturing under initiatives like the PLI scheme. Similarly, Nuclear Reactors, Boilers, Machinery, etc. (up 9.39%) and Pharmaceutical Products (up 11.30%) showed steady growth, indicating strength in engineering and healthcare exports.
- Agricultural Challenges: Cereals exports plummeted by 20.68%, from 1,690.32 USD million to 1,324.58 USD million, likely due to export restrictions on non-basmati rice and wheat imposed in 2023 to ensure domestic food security. However, Coffee, Tea, Mate, and Spices grew by 14.21%, showing resilience in niche agricultural segments.
- Textile and Apparel Struggles: Both Articles of Apparel (Not Knitted) (-8.12%) and Articles of Apparel (Knitted) (-12.58%) declined, reflecting global demand slowdown and competition from countries like Bangladesh and Vietnam. In contrast, Cotton exports rose by 19.73%, driven by India’s position as a major cotton producer.
Standout Performers – India’s top 25 commodities exported in FY24
- Ores, Slag, and Ash: This commodity recorded the highest growth at 95.26%, jumping from 266.63 USD million to 514.10 USD million. The surge may be linked to increased demand for raw materials in global markets, particularly in construction and manufacturing.
- Electrical Machinery and Equipment: The 20.29% growth underscores India’s growing role in the global electronics supply chain, a trend supported by government policies promoting domestic manufacturing.
- Tanning or Dyeing Extracts, Paints, etc.: A 20.28% rise (from 403.85 USD million to 479.92 USD million) indicates strong demand in industries like textiles and construction.
Significant Declines
- Cereals: The 20.68% drop reflects policy-driven export curbs, which prioritized domestic supply over international trade.
- Miscellaneous Chemical Products: A 16.50% decline (from 960.60 USD million to 792.41 USD million) suggests challenges in the chemical sector, possibly due to global oversupply or competition.
- Natural or Cultured Pearls, Precious Stones, etc.: The 13.80% decline aligns with weaker demand in luxury markets like the U.S. and Europe, as noted in trade analyses from 2024.
Sectoral Insights
- Metals and Minerals: Sectors like Iron and Steel (-11.48%) and Aluminium (-13.54%) faced declines, likely due to falling global prices and demand. However, Ores, Slag, and Ash bucked the trend with its massive growth.
- Marine and Meat Products: Fish and Crustaceans exports fell by 10.25%, possibly due to supply chain issues or reduced demand in key markets. In contrast, Meat and Edible Meat Offal grew by 17.08%, indicating strong demand for Indian meat products globally.
- Pharma and Chemicals: Pharmaceutical Products (11.30% growth) continue to be a bright spot, reinforcing India’s role as a global pharmacy. However, Organic Chemicals (-4.99%) and Miscellaneous Chemical Products (-16.50%) struggled, highlighting uneven performance in the chemical sector.
Critical Perspective
The establishment narrative often highlights India’s overall export growth (e.g., total exports reaching USD 778.21 billion in FY 2024, as per PIB data), but this commodity-wise breakdown reveals a more nuanced picture. While sectors like electronics and pharmaceuticals are thriving, traditional heavyweights like mineral fuels and textiles are faltering. The decline in cereal exports, though policy-driven, raises questions about long-term food export potential, especially as global food security concerns grow. Additionally, the heavy reliance on a few growth sectors (e.g., electronics) could expose India to risks if global demand shifts or supply chains are disrupted. India’s export strategy needs to balance diversification with stability in traditional sectors to mitigate such vulnerabilities.
Conclusion
India’s commodity exports in FY 2024 showed a mixed performance compared to FY 2023. While high-value sectors like electrical machinery, pharmaceuticals, and machinery grew, traditional sectors like mineral fuels, cereals, and textiles faced declines. The standout growth in ores and cotton highlights untapped potential in raw materials, but the overall trade deficit (as noted in broader trade data) underscores the need for a more balanced export strategy. India must continue to diversify its export basket while addressing challenges in declining sectors to sustain long-term growth.
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