Indian exporters outperform global peers despite geopolitical headwinds: Finance Minister

Speaking at the India Exim Bank Trade Conclave, Sitharaman emphasised that Indian exporters have demonstrated remarkable adaptability and innovation in navigating multiple global crises that have disrupted international trade flows.

"Despite the complex geopolitical situation, Indian exporters are doing well," the Finance Minister said, noting that India's export performance has been particularly impressive given the challenging global environment.The Finance Minister acknowledged that global challenges have only intensified in recent years, with external pressures mounting on international trade. She pointed to a series of geopolitical conflicts that have severely disrupted global commerce, including the ongoing Russia-Ukraine war and the Israel-Gaza conflict.

"In the last few years, global growth and trade have all suffered. There was the Russia-Ukraine war, then it was Israel-Gaza. Every year we've had one or the other serious challenge to do with trade," Sitharaman observed.

These successive crises have created an environment where "the world seems not favourable for export," making India's export performance all the more remarkable.Despite these headwinds, Sitharaman identified three standout qualities that have enabled Indian exporters to thrive in difficult circumstances.

First, she noted that Indian exports are "growing and growing significantly," demonstrating consistent expansion even as global trade faces headwinds.

Second, Indian exporters have evolved beyond traditional commodity exports, increasingly focusing on "technology-infused high-end products" across diverse sectors, including pharmaceuticals, IT-related services, and automobiles.

"India is not just about exporting raw foods or commodities. It is exporting today well-engineered products which meet high standards," the Finance Minister emphasised.

The third quality involves the strategic diversification of export destinations, with Indian companies actively seeking new markets and opportunities rather than relying on traditional trading partners.The Finance Minister's remarks underscore a significant transformation in India's export profile, moving away from low-value commodities toward sophisticated, technology-driven products. This shift has positioned Indian exporters to compete more effectively in global markets and command better prices for their products.

The emphasis on pharmaceuticals, IT services, and automotive exports reflects India's growing capabilities in high-skill, high-value manufacturing and services sectors.

Recognising the challenges posed by the unfavourable global export environment, Sitharaman stressed the importance of supporting small and medium enterprises (SMEs) entering the export sector.

"Outside, we find the challenges are there, and therefore every encouragement given for those small and medium units which are coming up in the export area will be of immense benefit," she said.

Going further, the Finance Minister added that in the FY 2024-25, India's total exports reached an all-time high of USD 825 billion, achieving 6 per cent growth over the previous year, and a significant leap from USD 466 billion in 2013-14.

While global exports grew by around 4 per cent, India's exports expanded at a faster pace of 6.3 per cent, she added.