India meets hardly 1.4% of merchandise import demand of G20 countries.

India has export potential in dairy products, beverages, toys and sporting goods

India has huge untapped export potential to the 20-member G20 countries that include large markets such as the European Union, USA, Russia, China and small markets such as Argentina and Türkiye. India’s annual exports to G20 countries has grown 75% to USD 232 billion by 2021 from USD 132 billion in 2016. However, we still meet hardly 1.4% of the annual merchandise import of G20 countries (minus India), which stands at USD 17.13 trillion as of 2021.

Electrical Machinery, transport equipments and road vehicles account for nearly 30% of the total import of G20 countries. In all these sectors, India has less than 1% share in meeting the total imports of G20 countries.

Increase in Share

Except for textile yarn and related products, India does not meet more than 5% of the import demand of G20 countries in any other product category. India managed to increase its share in meeting their import demand for animal feed, organic chemicals, dyeing tanning & colouring materials, petroleum products, iron & steel products, non-ferrous metals, power generating machineries and rubber products since 2016. We have also managed to increase our market share in food products, furniture, plastics, paper products, pottery, metal working machinery, auto-components, telecom equipments etc.

Decline in Share

However, our share in meeting their import demand for labour intensive goods such as apparel, clothing and leather accessories declined since 2016. In other categories such as glassware, footwear and travel goods as well, India’s share as an exporter to G20 countries has declined marginally since 2016.

Potential exports

There are around seven product categories where India’s share in meeting import demand of G20 countries is less than 0.5% and hence there is scope to expand our footprint in these sectors. These product categories are: dairy products, baby carriages, toys & sporting goods, beverages, office machines, including computers, fertilizers and electrical machinery. ?Out of these, India can look to increase its exports in dairy products, toys, beverages and sporting goods.