“India’s global market share in sectors like apparel, leather, shoes, and marine products has been decreasing, primarily due to concerns over quality rather than pricing issues,” Global Trade Research Initiative (GTRI) Co-founder Ajay Srivastava said.
The report said that the key sectors that witnessed a higher share in global trade are electronics, telecom, mobile phones, and electrical equipment, as well as machinery.
This is noteworthy as these product groups hold substantial importance in world trade, which exceeds USD 6 trillion.
India’s historically low share in these sectors is gradually but decisively improving, Srivastava said.
“In 2022, India’s share in global merchandise trade stood at 1.8 per cent. However, its share in machinery and electronics was a mere 0.75 per cent and 0.4 per cent, respectively in 2015. Over the course of seven years, there has been a marginal yet significant improvement in these shares,” it said.
The report also stated that quality issues are not limited to pharmaceuticals but also affect Indian aquaculture products, such as shrimp and prawns. Many countries reject these products due to the presence of salmonella (a kind of bacteria), highlighting the need for a robust internal system.
It added that ensuring thorough quality checks within India will prevent rejections in foreign countries, which tarnish the reputation of Indian products and lead to loss of orders.
Quality issues have also impacted Indian tea exports, with reports of countries holding consignments of Indian teas citing phytosanitary issues and presence of pesticides exceeding permissible limits, it said.
“The industry must tackle quality challenges across various sectors to regain market share and maintain a positive perception globally,” it said.
The report said that the reputation and orders of the pharma industry can be severely impacted by a single instance of poor-quality cough syrup.
To maintain its position as the pharmacy of the world, India must prioritize addressing quality issues, it said adding reducing critical dependence on imports of Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs) from China is essential.
Share of India’s pharma exports in the world trade dipped to 2.25 per cent in 2022 as against 2.79 per cent in 2015.
Share of gems and jewellery dropped to 4.74 per cent in 2022 as against 7.47 per cent in 2015. Similarly, the share of fish and crustaceans; and leather items dipped to 4.52 per cent and 2.92 per cent in 2022 as against 4.77 per cent and 3.65 per cent, respectively in 2015, it said.
On the other hand, share of India’s automobiles and parts’ exports in the world trade increased to 1.32 per cent in 2022 as against 1.11 per cent in 2015.
Similarly, share of iron and steel; and aluminium products rose to 2.66 per cent and 3.55 per cent in 2022 as against 1.98 per cent and 1.69 per cent, respectively in 2015, it added.
