India Sees Export Boom in Toys, Defence, Footwear, and Smartphones
In an exciting development for the Indian economy, the Economic Survey FY24 has revealed significant growth in key export sectors. Released just a day before the Union Budget, the survey highlights the impressive strides India has made in exporting toys, defence equipment, footwear, and smartphones. Let’s take a closer look at each of these thriving sectors.
Revival of the Toy Industry
One of the standout stories from the Economic Survey FY24 is the revival of India’s toy industry. Traditionally a net importer, India has transformed its toy sector into a growing export market. Data from the Directorate General of Commerce Intelligence and Statistics (DGCIS) shows that toy exports have grown at a Compound Annual Growth Rate (CAGR) of 15.9% between FY13 and FY24.
This remarkable growth can be attributed to several measures taken by the government, including the formulation of a National Action Plan for Toys with 21 specific action points, increasing basic customs duty on toys, and implementing strict quality control measures. The import bill for toys from China has drastically reduced from $214 million in FY13 to $41.6 million in FY24.
Furthermore, India’s integration into the global toy value chain and zero-duty market access agreements with countries like the UAE and Australia have bolstered its status as a burgeoning toy-exporting nation.
India’s Defence Sector: From Importer to Exporter
In a significant turnaround, India has shifted from being the second-largest arms importer to a major exporter of defence equipment. The country’s defence production soared from ₹74,054 crore in FY17 to ₹1,08,684 crore in FY23. What’s more, export authorisations have increased to 1,507 in FY24, up from 1,414 in the previous fiscal year.
The government’s initiatives over the past decade have been pivotal in driving this change. These include simplifying export procedures, making them industry-friendly, and ensuring end-to-end online export authorisation to reduce delays. The Aatmanirbhar Bharat (self-reliant India) initiative has also played a crucial role by encouraging the indigenous design, development, and manufacture of defence equipment.
Footwear Exports on the Rise
The footwear sector has also shown remarkable growth. According to DGCIS data, India’s footwear exports climbed to $2.5 billion in FY24, compared to $1.9 billion in FY21. India now stands as the second-largest producer of footwear globally, accounting for 13% of the world’s total production.
This sector’s progress can be credited to government measures such as issuing Quality Control Orders for the footwear and leather industry, easing testing facility creation by allowing outsourcing, and raising awareness among manufacturers. With the Indian footwear market valued at $26 billion, projections indicate it could reach $90 billion by 2030, driven primarily by the increasing demand for non-leather footwear and potential shifts in leather shoe production.
Smartphone Exports Soar
The smartphone sector has witnessed phenomenal growth, with exports jumping 42.2% year-on-year (YoY) in FY24. Thanks to the boost in exports and surplus domestic production, smartphones have become one of India’s top export categories. The Production Linked Incentive (PLI) scheme, introduced in 2020, has been instrumental in propelling smartphone production and exports to new heights.
According to the Economic Survey, smartphone exports in FY24 were 31% higher than the total production of smartphones within the country. This surge has solidified India’s status as a major player in the global smartphone market.
Conclusion
The Economic Survey FY24 paints a promising picture of India’s export landscape, highlighting the remarkable growth in toys, defence equipment, footwear, and smartphones. These sectors’ success stories underscore the positive impact of targeted government initiatives and the country’s increasing integration into global supply chains.
As India continues on this upward trajectory, it is clear that these thriving industries will play a pivotal role in shaping the nation’s economic future. Stay tuned for more updates and insights into India’s evolving export market.
Mehek