EXPORTS: BREAKING INTO TOP FIVE

India is now among top five exporters in a large number of categories. The lessons from these successes can be used to dominate in other sectors.

- JOE C. MATHEW

IN 2014, INDIA WAS A MARGINAL player in export of molasses, a by-product of sugar manufacturing. Between 2014 and 2022, India’s molasses exports grew from $12.92 million ($933 million global market) to $265.55 million ($1,005 million global market). From 1.38% market share and 21st position in 2014, India jumped to the number one molasses exporter in 2022, the latest year for which global trade data is available; market share touched 26.41%. What made the difference was a decision by key importers—North European countries use molasses in cattle feed—to switch to India due to lower cost. “It was a win-win situation. The sugar miller, who was getting `5,000 for one-tonne molasses in domestic market, started getting `10,000. North European countries found India good in both price and quality,” says Prakash P. Naiknavare, managing director, National Federation of Cooperative Sugar Factories.

Despite being a marginal player in goods with less than 2% market share, India has become one of the top five exporters in several products, besides molasses. For instance, it moved from 14th to 4th position in certain categories of petroleum products between 2014 and 2022. In some precious and semi-precious stones, it moved from 11th to top position. In aluminium, it moved from 35th to 5th (tubes, pipe fittings) and 9th to 2nd (unwrought aluminium) ranks. In cyclic hydrocarbons, it went from 8th to 5th with 8.4% market share. What does this signify?