India’s exports to US touch $77.5 billion in FY24, growing at 10.3 % CAGR over 30 years: Report

New Delhi: India’s exports to the United States have shown a consistent upward trend, valued at USD 77.5 billion in FY24, marking a growth rate of 10.3 per cent compounded annually (CAGR) over the last 30 years, according to a report by Bank of Baroda.

Notably, the growth in exports to the US was higher than aggregate exports until FY00. However, the global financial crisis in 2008 slowed down growth until FY10.

Since then, the growth in exports to the US has consistently outpaced the overall export growth, underscoring the growing importance of the American market for Indian exports.

The report highlights that India’s exports to the United States have followed a similar trajectory to the country’s overall export growth since 1991, when India began economic reforms.

As of FY24, the US accounts for 18 per cent of India’s total exports, a rise from 16.4 per cent in FY92 but still below the peak of 22.8 per cent in FY00 (financial year 2000).

The share of US in India’s exports fell to a low of 10.1 per cent in FY11 post the financial crisis, but it has rebounded over the years. Despite this, the report advises diversifying India’s export markets to reduce dependency on any single destination, particularly in light of shifting global political dynamics.The US remains a crucial market for several key Indian industries. In FY24, the top five export commodities to the US included drugs and pharmaceuticals, pearls and precious stones, petro products, telecom instruments, and ready-made garments, together accounting for 40 per cent of total exports to the country.

Other notable exports include yarn, marine products, and electronic goods, with the latter facing competition from other Asian countries.

Industries like drugs and pharmaceuticals, pearls and precious stones, telecom instruments, and ready-made garments have the highest exposure to the US, with over 30 per cent of their turnover tied to the American market.

On the other hand, sectors like carpets, electronic products, yarn products, and marine products have a high percentage of exports to the US despite their smaller overall export value.