Pritam Deuskar Wealthyvia- India is the world's fastest-growing economy and has been on a path of progression where the manufacturing sector plays a vital role. India has successfully become the world's third largest in exports and is one of the fastest growing economies in the world.

2. Pritam Deuskar Wealthyvia- India is the world's fastest-growing
economy and has been on a path of progression where the
manufacturing sector plays a vital role. India has successfully
become the world's third largest in exports and is one of the fastest
growing economies in the world.
Exports have seen tremendous growth over the last two years.
Pritam Deuskar says, India has reached $418 billion of
manufacturing exports in fiscal year 2022 (FY22) with rapid growth
over the last 2 years. Though India contributes 3.1% of GDP, our
export contribution to the world has been a mere 1.6% only and
looking at the current opportunities, it has immense scope,
potential and triggers to grow. By 2028, it is expected that India will
reach 1 trillion of manufacturing exports. Manufacturing’s share of
GDP in India is estimated to increase from 15.6% currently to 21%
by 2031—and, in the process, double India’s export market share.
The government also launched an interest equalization scheme to
make credit available for cheaper exporters in India.

3. Merchandise Exports: - Over the last nine years, merchandise
exports from India have hovered around $260-330 billion, with
the highest ever being $330 billion in 2018-19. The government
has set up a target of $1 trillion in 2027-28 for merchandise
exports and $500 billion exports in the next two years.
Indian exports majorly included: Pearls, precious and semi-
precious stones and jewellery (16 percent of total shipments);
mineral fuels, oils and waxes and bituminous substances (12
percent); vehicles, parts and accessories (5 percent); nuclear
reactors, boilers, machinery and mechanical appliances (5
percent); pharmaceutical products (5 percent); and organic
chemicals (4 percent). India’s main export partners are: United
States (15 percent of the total exports), United Arab Emirates
(11 percent), Hong Kong (5 percent), China (4 percent),
Singapore (4 percent) and United Kingdom (3 percent).

4. The prominent factors that are driving and supporting this growth are
as follows: -
1. PLI scheme - India is all set to emerge as the fastest growing
economy in the world backed by the success of the government’s
Production-Linked Incentive (PLI) Scheme. The Scheme involves
incentives of Rs. 1.97 lakh crore over a period of five years and
covers 13 sectors such as telecom, electronics, auto parts,
advanced batteries, pharmaceutical drugs, and solar energy
components.
2. Acquisitions abroad: - Joint venture undertakings are
established abroad by the Indian entrepreneurs for building up
an export potential for their products manufactured through
foreign collaboration in the developing countries where there is a
favourable political climate and a demand for the Indian
products.

5. Top Sectors contributing to India's Exports market
Engineering goods registered a 50 per cent growth in exports,
at $101 bn in FY22. This is mainly due to the benefits that the
sector enjoys due to various trade agreements India has with
other countries. It is expected to continue its rise in steel, auto
components and medical devices and India's push for Make in
India. Currently all pumps, tools, carbides, air compressors,
engines, generators manufacturing MNC companies in India
are trading at all time highs with increased prospects of
shifting increased production to India. High energy prices and
labor costs In Europe can trigger this further. Also many MNC
groups have taken over some of indian companies and
promoter change with cash rich and global footprint can make
these companies into global giants in the coming decade.
Specifically auto components, power tools, energy, tractors to
name a few.

6. Pharmaceuticals: - It is the largest provider of generic medicines
globally. The country has a share of 20% in the global supply volume
and contributes to around 60% of the global vaccines. Key segments
of the Indian pharmaceutical industry are OTC medicines, Generics,
APIs, Vaccines, Biosimilars, and Custom Research Manufacturing
(CRM). Formulations and Biologics constituted the major portion of
India’s exports with a share of 73.31% followed by drug intermediates
and bulk drugs.
Iron and steel
As of April 2022, India was the world's second-largest producer of
crude steel, with an output of 10.14 MT. The growth in the Indian
steel sector has been driven by the domestic availability of raw
materials such as iron ore and cost-effective labour. The Indian steel
industry is modern, with state-of-the-art steel mills. It has always
strived for continuous modernisation of older plants and up-
gradation to higher energy efficiency levels.

7. Electronics Value
NPE 2019 targets for electronics production in 2025-26 at US$ 300
billion appears to be more realistic considering the disruption on
account of COVID-19. Continuing on the path of import
substitution, India’s domestic electronics market is estimated to
reach at best US$ 150-180 billion from the current US$65 billion
over the next 4-5 years. The hearables and wearables market are
estimated to have overall production of ~US$ 8 billion by 2024, if
large scale hearables manufacturing could be aimed to address
10% of the Global market by 2024. Average contribution of PCBA to
the Bill of Materials (BoM) is at around 40% and presents a US$600
billion global PCB market. India’s prominent listed players can make
a difference in each such segment’s exports. India is seen as
Country that respects patents, designs IP rights and ODM practices.
Aim and mission is US$ 120 billion Electronics Exports by 2026 with
Electronics as top3 Category.

8. Estimated exports segment wise:
Source pib.gov.in statistics
Conclusion: - At present our exports are about 20 percent of GDP.
Considering the size of our economy, our potential, the base of our
manufacturing and service industry, it has the potential to grow a lot.
India needs to have a seamless and high-quality supply chain and low-
cost logistics to boost exports. Gatishakti and logistic parks can play
huge role in this along with railway transformations in our view.

9. The key reasons for stellar export performance are sharp recovery in
key markets, increased consumer spending, accumulated savings
and disposable income due to the announcement of fiscal stimulus
by major economies, global commodity price rise, and an aggressive
export push by the government.
As investors , we should focus on individual robust companies in
these categories which will reap most of the benefit efficiently
managing their margins during such megatrends, says Wealthyvia
founder Pritam Deuskar.
Pritam Deuskar wealthyvia says, The export-oriented manufacturing
hub in India has been a great success. It has provided employment to
millions of people and has helped improve the quality of life for
many families. The government is expanding the program and
making it even more successful. With the right policies in place, India
is becoming a world leader in export-oriented manufacturing.