Question

Analyse the changing pattern of export composition in India between 2009 to 2017.

Hint:

1. India is moving from "Raw Material Exporter" to "Manufactured Goods Exporter."
2. Engineering goods and Petroleum products are the current leaders in the export basket.

Answer 1

Concept:
• Export composition refers to the various types of commodities that a country sells to the international market.

• Changes in this composition reflect the structural transformation of the domestic economy.

• Over time, India has shifted from exporting primary products to manufactured and value-added goods.

Step 1: Shift in the share of agricultural and allied products
The share of traditional agricultural products like tea, coffee, and spices has shown a declining trend in terms of total percentage.
However, fresh fruits, vegetables, and processed food items have shown some growth.

Step 2: Rise of manufactured and engineering goods
There has been a significant increase in the share of manufactured goods.
Engineering goods, such as machinery, transport equipment, and electronics, have become dominant exports.
This indicates the growing technological capability of the Indian industrial sector.

Step 3: Expansion of chemical and related products
The export of chemicals and chemical products, including pharmaceuticals, has grown rapidly.
India has emerged as a major global supplier of generic medicines.

Step 4: Dominance of petroleum products and jewelry
Petroleum products emerged as a major export item due to the expansion of domestic refining capacity.
Gems and jewelry continue to hold a large share, although their percentage contribution fluctuated during this period.