Exports Usher Growth

A strong emphasis is being placed on becoming self-reliant while simultaneously positioning India as an exporter of semiconductors and chips, says Sarat Kumar Mishra

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THE GDP of India at the end of March 2025, as per IMF data, stood at $4.30 trillion, just a whisker behind Japan's GDP of $4.41 trillion.

The projection is that India will overtake Japan this year, catapulting itself into 4th position, and into 3rd place in the next two years by surpassing Germany. Since 2015, India's GDP has recorded a phenomenal growth of 105%, the highest among all major economies in the last decade.

Besides other factors, the export of goods and services plays a key role in shaping the GDP of a nation. Export growth is possible when high-quality products are made in tune with global demand, at competitive prices that attract interest from countries worldwide. There are both standard and customized products to meet the demands of ordinary and niche markets, respectively. Certain products are primarily for domestic consumption, while others serve both domestic and foreign markets. Additionally, some products are exclusively designed to cater to the demands of overseas consumers.

The economy of any nation, for that matter, depends on production and the purchasing power of its people. Production is sustained by adequate investment, sufficient demand, and an uninterrupted supply chain. In fact, hassle-free supply chains constitute the most important part of backward and forward integrations in any business model.

Regardless of whether a project is greenfield or brownfield, its success will depend on generating sufficient demand to match the production capacity of the unit at an optimal level. Demand from external sources helps boost exports, which are vital for conserving foreign reserves on one hand and adding to GDP on the other.