Question

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

Hint:

India’s exports have shifted from mainly raw materials to manufactured and service goods, reflecting economic development and globalization.

Answer 1

India’s export composition has changed significantly over the decades due to changes in the economy, technology, and global demand. The key changes are:
From Primary to Manufactured Goods: Earlier, India mainly exported agricultural products, raw materials, and minerals. Now, manufactured goods, including textiles, chemicals, machinery, and automobiles, form a larger share.
Increase in Services Exports: Along with goods, India’s service exports like IT, software services, and business process outsourcing (BPO) have grown rapidly, contributing significantly to the export revenue.
Diversification of Markets: India has expanded its export markets beyond traditional partners to countries in Africa, Latin America, and East Asia.
Growth of High-Tech Products: The export of electronics, pharmaceuticals, and engineering goods has increased due to technological advancements.
Decline in Agricultural Exports: While still important, the relative share of agricultural and allied products in total exports has decreased.