The government of India has made a concerted push for the promotion of India-made products abroad. The crux of this initiative is to leverage and expand India’s exports and its share in global trade. This would transform India from being just a passive local market to an active manufacturing hub at the heart of global value chains. The vision undoubtedly is grand but needs proper support for its success. Investments, incentives and skill creation along with innovation and next generation engineering will help revitalise India’s manufacturing sector and boost its exports.
India’s reputation as a world class manufacturer is gaining momentum with vibrant hubs in major cities. Noida, for instance, is a leader in the manufacturing of electronics; Bangalore and Hyderabad have emerged as global R&D, start-up, and IT centres. The impetus to develop regional hubs of specialisation by industry has been the benefits of operational optimisation, innovative flair, and quality excellence giving the country/ region a competitive advantage.
India’s evolution in exports
Products initially launched to cater to domestic needs have expanded to reach a global market. Exports are extremely important for the overall growth of a country’s economy and also for global trade. In this era of globalisation, most leading economies in the world are also major exporters. For instance, China is the world’s leading exporter of goods, followed by the US, Germany and Japan. India, too, is rising up the ranks as it keeps expanding its global export footprint. At present, India is one of the top agricultural exporters in the world. Exports offer millions of small business owners and corporate firms access to a wider global market, where they can sell their products.
At Gandhar, we are growing our offering and becoming a major global player in specialty oils, namely, white oils for cosmetics/ pharmaceutical/ plastics applications; industrial lubricants including heat transfer fluids and transformer oils for automotive companies; and rubber processing oils. Our expertise and ramped-up production helped us become even more competitive and attractive to overseas customers. Additionally, we have also extended our know-how to other emerging markets in the Middle East and North Africa. With the opening of Texol Lubritech FZC, a production facility in Sharjah UAE that manufactures a wide range of specialty oils and lubricants under the brand name “TEXOL”. The joint venture between Gandhar and Texol has not only diversified our production but also allowed us to continue fulfilling export orders without disruption during the pandemic. Because of an increase in numbers of industrial orders since last September we ended the financial year with our best numbers in terms of revenue and profitability.
Higher exports help companies and businesses located in one country to maximise sales and profits besides presenting an opportunity to capture a good chunk of global market share in a particular segment. Exports not only help governments generate additional revenues but also help exporters both small businesses and major companies expand operations due to higher profits. Exports significantly help a country to boost per capita income, which is essential for generating higher domestic income and demand. Scaling up exports also help create more employment opportunities, which ultimately translates into higher GDP growth. Needless to say, a healthy export cycle can significantly boost a country’s economic growth if imports do not exceed the outflow of goods.
According to news reports, the top five commodity groups that India exported most in recent months were petroleum products, gems and jewellery, other cereals, man-made yarn and fabrics and cotton yarn and fabrics.
Rising exports are a good sign for India in a climate where many countries are still to recover from the economic downturn induced by Covid. In fact, the government has planned several measures to transform India into an export-led economy. These plans now need to be set in motion for India to become a leading exporter and manufacturing hub for the world, a position enjoyed at the moment by China.
The government still needs to take many concrete steps to boost India’s export sector. Tax-sops, grants, interest schemes, and proactively signing free trade deals would be a good start.