India enhances global market share in select industries

India has significantly enhanced its market share in crucial sectors, emerging as a key player in international supply chains. By 2023, the country became the second-largest exporter of petroleum products, with exports soaring to US$ 84.96 billion, up from US$ 47.08 billion in 2018, and establishing itself as the world’s leading exporter of gems and jewelry, valued at US$ 1.52 billion.

There are sectors such as insecticides, tires, and semiconductors where remarkable growth can be seen which reflects India’s rising competitiveness and favorable market conditions. Furthermore, the country is positioned to become a vital hub for agrochemical production while gaining traction in the US apparel market, showcasing its potential to adapt and thrive amid changing global trade dynamics.

India has strengthened its global trade presence in key manufactured products, such as petroleum, gems and jewelry, insecticides, tires, and semiconductors, thanks to rising competitiveness, according to the Ministry of Commerce and Industry.

India’s petroleum exports have experienced the most dramatic growth. In 2023, India became the world’s second-largest exporter of petroleum products, with exports climbing from US$ 47.08 billion in 2018 to US$ 84.96 billion. This surge doubled India’s global market share to 12.6% from 6.4%. Petroleum and related products, which accounted for just 5% of India’s exports in the early 2000s, now represent 20% of total exports, based on 2023 data from the ITC Trade Map. This growth is partly driven by India’s access to discounted Russian crude oil, allowing competitive pricing on refined products, along with enhanced refining capabilities, increased production, and compliance with international standards.

In the gems and jewelry sector, India has taken a commanding lead. By 2023, India’s share of the global market in precious and semi-precious stones soared to 36.5%, up from just 2.64% in 2014, making India the world’s largest exporter in this category, with exports valued at US$ 1.52 billion. This remarkable growth can be attributed to India’s extensive craftsmanship, favorable trade policies, and strong global demand for high-quality gemstones. Indian jewelry exporters are seeing rising demand in the Middle East, particularly in Saudi Arabia and Kuwait. The Gem & Jewellery Export Promotion Council reports significant growth in these markets, driven by increasing buyer attendance at Indian jewelry shows and favorable trade agreements like the UAE CEPA.

India’s exports of insecticides, fungicides, and similar products have also expanded significantly, establishing it as the third-largest global exporter. Shipments were valued at US$ 4.32 billion, representing a market share of 10.8%, up from 5.9% in 2018. This growth reflects the increasing global reliance on Indian agricultural products, which are essential for pest control and crop protection. Market trend reports show that India is being keenly looked at as an ideal hub for export-oriented production of agrochemicals, highlighting the country’s potential to enhance its role in the global agrochemical supply chain.

In the rubber pneumatic tire segment, India advanced from the 13th to the 8th position globally. Exports of tires reached US$ 2.6 billion in 2023, accounting for a 3.3% share of the global market. This growth has been driven by rising demand from emerging markets, where automotive sectors are rapidly developing, along with competitive pricing and innovation in tire manufacturing.

India’s entry into the global semiconductor market has been remarkable. Exports of semiconductors and photosensitive devices surged to US$ 1.9 billion in 2023, a significant rise from just US$ 0.16 billion in 2018. This jump moved India’s rank in semiconductor exports from 25th to 9th globally, with a 1.4% market share. The surge in exports highlights India’s growing capabilities in technology and manufacturing, as well as its potential to play a major role in the global semiconductor supply chain.

Additionally, India is making waves in the US apparel market as the crisis in Bangladesh continues to disrupt supply chains. The US International Trade Commission has highlighted India’s credibility as a preferred apparel sourcing destination, indicating a shift in consumer preferences toward more reliable suppliers. Presently, 80% of production in India caters to the domestic market, but its international prominence is slowly rising. As India enhances its production capacity and quality standards, it is poised to capture a larger share of the global apparel market, especially as buyers seek alternatives to traditional sourcing regions.