Unlocking India's Export Potential: Tapping into products where overall exports are low

When we talk about boosting exports, the conversation often centers around the products that are already doing well in international markets—our top exports. But what if the potential lies in the products that are currently considered “small categories”? These so-called small categories are the ones where real growth can happen, and where innovation has room to flourish.

Firstly, out of a total of 98 HS Codes at 2 digit level, 50 account for only 4.33% of India's total exports. Among these, only 35 HS Codes have exports higher than $100 million.

Secondly, these smaller categories exhibit stronger growth year-over-year, so let's take a closer look at these lesser-known product groups and explore the exciting opportunities they offer for improvement and expansion.

This table has been created by considering the bottom products in terms of export performance and noting down those that have shown growth compared to last year’s exports:

Values in $ millions

Based on the table, some products (highlighted) show significant potential for India’s One District One Product (ODOP) scheme and Export by Post (Dak Niryat Kendras) initiative.

These products stand out due to their growth and unique characteristics, making them ideal candidates for regional promotion and export through postal services:

1. Printed Books, Newspapers, Pictures, and Other Products of the Printing Industry (HS Code 49)

Growth: +12.6%

Reason: India has a rich literary and publishing tradition, with a large number of districts engaged in printing and publishing. Products like books, educational material, newspapers, and artistic prints can be exported efficiently via postal services, with low-cost and lightweight items benefiting from the Dak Niryat Kendras scheme.

2. Works of Art, Collectors' Pieces, and Antiques (HS Code 97)

Growth: +150.47%

Reason: India’s art, culture, and heritage are globally appreciated. The export of unique artworks, antiques, and handcrafted items from various districts (such as Jaipur, Delhi, or Kolkata) could see a significant boost with postal export services. These products are often lightweight and easy to handle for export by post.

3. Impregnated, Coated, Covered, or Laminated Textile Fabrics (HS Code 59)

Growth: +23%

Reason: This category includes textiles used for industrial purposes and home furnishings, which are in demand worldwide. Districts in states like Gujarat, Tamil Nadu, and Maharashtra that specialize in textile manufacturing could benefit by exporting their products through the Dak Niryat Kendras. Lightweight and durable textile products are ideal for postal exports.

Now let us have a look at how these products performed on an international scale:

Values in $ billion

These products may currently be underperforming, but they hold significant untapped potential in global markets. With the right strategies and focus, they can be transformed into high-growth export categories.

Here’s some tips to improve export potential for these products:

1. Market Research: Identify target markets with unmet demand and tailor products to local preferences.
2. Product Innovation: Enhance product features, design, and quality to stand out in global markets.
3. Leverage ODOP: Focus on regional strengths, invest in skill development, and encourage local specialization.
4. Branding & Marketing: Build a strong, unique brand and promote it through digital channels and e-commerce platforms.
5. Improve Logistics: Utilize Export by Post and streamline shipping and customs procedures for faster delivery. (Dak Niryat Kendras take full responsibility for transportation, packing and customs clearance based on online documentation)
6. Sustainability: Adopt eco-friendly practices and packaging to appeal to environmentally conscious markets. (The Eco Mark, issued by BIS, certifies products as environmentally safe, meeting prescribed ecological standards)

Another great aspect to consider:

The total overseas Indian population stands at an impressive 35.42 million, comprising 15.85 million Non-Resident Indians (NRIs) and 19.57 million Persons of Indian Origin (PIOs).

Why the Overseas Indian Population is Crucial for “Export by Post”:

1.?Established Global Network: NRIs and PIOs are already integrated into foreign markets. Their local knowledge, connections, and trust in Indian goods make them ideal ambassadors for Indian exports, helping promote products among their networks.

2.?Demand for Indian Products: Overseas Indians often have a high demand for Indian-origin products, such as traditional handicrafts, spices, textiles, ayurvedic products, and regional foods. Exporting by post can bridge this gap, offering small businesses and artisans an efficient channel to fulfill this demand.

3.?Promoting Brand India: They help create global awareness and trust in Indian products, enhancing the reputation of Indian brands internationally. This paves the way for mainstream global market penetration.

4.?Boosting Foreign Exchange: Increased exports to NRIs and PIOs can contribute significantly to India's foreign exchange reserves, directly supporting the nation's economic growth.

These are only a few examples of how specific efforts can be taken to increase exports significantly. Similar strategy can be applied to other products as well.

In conclusion, while India’s top export products often dominate discussions, the growth potential also lies in the lesser-known, underperforming categories. These products, with their unique characteristics and growth potential, offer significant opportunities for expansion in global markets.

By leveraging initiatives like the One District One Product (ODOP) scheme and Export by Post (Dak Niryat Kendras), India can tap into new markets and strengthen its export presence. With strategic efforts in product innovation, market research, branding, and logistical improvements, these products can transform into key export drivers, contributing to both regional development and India’s overall trade growth.

This approach will also help India diversify its export basket, reducing dependency on a few top-performing products.

The time is now to focus on these hidden gems, turning untapped potential into tangible success.

By Sudhakar Kasture

Ajay Srivastava sudhir jakhere India Post T.N Seetharaman Chemical and Allied Products Export Promotion Councilê(CAPEXIL) Plastics Export Promotion Council (PLEXCONCIL) Export Promotion Council For Handicrafts (Epch) Virat Bahri ? TEXPROCIL - Arham Bardia Radhieka Mehta