Question

Describe the changing pattern of the composition of India’s exports.

Answer 1

The composition of India’s exports has undergone significant changes over time. The key trends include:
1. Shift from agricultural products to manufactured goods: Earlier dominated by exports like spices, tea, and jute, India now focuses on textiles, machinery, and engineering goods.
2. Growth in software and IT services: India has become a global leader in software exports and IT-enabled services, contributing significantly to foreign exchange earnings.
3. Decline in traditional goods: The export share of goods like jute and leather has decreased due to competition and changing global demands.
4. Increase in petroleum product exports: With the development of refining capacity, petroleum products have become a significant component of India’s exports.