A series of measures undertaken by the government have shown a remarkable increase in product-specific exports. Some of the success stories are mentioned below:
Toy Exports: India’s toy industry has long faced challenges in the global trade landscape, consistently being a net importer of toys for many years. However, the industry’s exports experienced notable growth in 2023. Per the Directorate General of Commerce Intelligence and Statistics (DGCI&S) data, India’s toy exports have risen, registering a Compound Annual Growth Rate (CAGR) of 15.9 percent between FY13 and FY24. Rising exports, coupled with declining imports, transformed India from a deficit to a surplus nation in the trade of toys. India heavily relied on China for around 76 percent of its toy imports for over a decade. India’s import bill for toys from China dropped from USD 214 million in FY13 to USD 41.6 million in FY24, leading to a decline in China’s share in India’s toy imports from 94 percent in FY13 to 64 percent in FY24, indicating India’s competitiveness in the international toy market.
Over the period 2014 to 2020, the government’s focused efforts resulted in the number of manufacturing units doubling, dependence on imported inputs reducing from 33 percent to 12 percent, gross sales value growing by a CAGR of 10 percent, and an overall rise in labor productivity.
The measures taken by the government for the toy industry include the formulation of a comprehensive National Action Plan for Toys with 21 specific action points, an increase in essential customs duty on toys, sample testing of each import consignment by the Directorate General of Foreign Trade (DGFT) to curb sub-standard imports, issuance of a Quality Control Order for toys, and support through cluster-based approaches. India’s emergence as a toy exporting nation can be further attributed to its integration into the global toy value chain and zero-duty market access for domestically manufactured toys in critical countries such as the UAE and Australia.
Defense Exports: India’s defense production grew substantially from ₹74,054 crores in FY17 to ₹108,684 crores in FY23, boosting defense exports. Between 2015 and 2019, India held the distinction of being the world’s second-largest arms importer. The narrative, however, has changed. India has transitioned from an arms importer and found a place in the list of the top 25 arms exporter nations. The defense industry, including the private sector and defense Public Sector Undertakings (DPSUs), has made tremendous efforts to achieve the highest-ever defense exports. In addition, there has been a rise in the number of export authorizations issued to defense exporters. From 1,414 export authorizations in FY23, the number has increased to 1,507 in FY24. About 100 domestic companies export a wide range of defense products and equipment, such as aircraft like Dornier-228, artillery guns, Brahmos Missiles, PINAKA rockets and launchers, radars, simulators, and armored vehicles.
To give a push to defense exports, the government has taken several policy initiatives over the past ten years. Export procedures have been simplified and made industry-friendly, with end-to-end online export authorization curtailing delays and facilitating ease of doing business. Further, the Aatmanirbhar Bharat initiatives have helped the country by encouraging Indigenous design, development, and manufacture of defense equipment, thereby reducing dependency on imports in the long run.
Footwear Exports: The Indian footwear and leather industry is an important foreign exchange earner. India is the second-largest global footwear producer after China, accounting for 13 percent of global footwear production and 2.2 percent of global exports. India is the ninth-largest global footwear exporter. As per DGCIS, India’s footwear exports have increased from USD 1.9 billion in FY21 to USD 2.5 billion in FY24.
The government has undertaken various measures to boost footwear exports. These include the issuance of three Quality Control Orders for the footwear and leather sector after consultation with the Bureau of Indian Standards, relaxation in the creation of testing facilities by allowing outsourcing of the majority of the tests which are carried out less frequently, creating awareness amongst footwear manufacturers of footwear across India, among others. The government has approved the continuation of the ‘Indian Footwear and Leather Development Programme’ till 31 March 2026. The leather and footwear sector can avail of benefits of export promotion schemes under the Foreign Trade Policy 2023 and other benefits provided under the Market Access Initiatives Scheme, Trade Infrastructure for Export Scheme, Interest Equalisation Scheme, etc. The Indian footwear market, valued at USD 26 billion, is expected to reach USD 90 billion by 2030. This growth will be driven by increased non-leather footwear demand and a possible shift in leather shoe production from small-scale cottage industries to large corporates. Changing market dynamics, mainly fuelled by evolving shopping habits, rapid urbanization, greater brand awareness, the development of retail precincts/malls, and rising discretionary budgets, are contributing to this trend.
Smartphone exports: India’s domestic production and exports of smartphones have been increasing steadily, with significant changes achieved, especially since the launch of the Production Linked Incentive (PLI) scheme in 2020. FY20 marked the first time domestic production exceeded domestic demand, and smartphones became one of India’s top export categories. Exports now provide the primary stimulus for the growth of the sector. A 42.2 percent increase in exports in FY24 (on a YoY basis) enabled smartphones to rank among India’s top five export items, considered six-digit HS product categories.
India also became the world’s sixth-largest smartphone exporter in 2022, up from the 23rd-largest smartphone exporter in 2014. This high export growth has led to an increase in the ratio of exports to production, with exports being above 31 percent of the total output of smartphones in India in FY24.
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