In a year of global trade turmoil, Gujarat’s loss is Tamil Nadu’s gain.
Even as Gujarat and Maharashtra retained top spots in the share of India’s merchandise exports in FY24, their contribution to the country’s exports dipped, while Tamil Nadu and Andhra Pradesh gained ground. For Maharashtra, this is also the third consecutive year of decline in share since FY21.
As per Commerce Ministry data, Gujarat with $134 billion held 30.7 per cent of India’s $437-billion merchandise exports in 2023-24, but this was a decline from 32.7 per cent share it held in FY23. However, Gujarat has grown its share from 20.7 per cent in FY21. Maharashtra’s share was at 15.4 per cent in FY24, down from 16.2 per cent in FY23, 17.4 per cent in FY22 and 20 per cent in FY21.
In contrast, Tamil Nadu (TN) was the only State among the top five to grow its share in the last three fiscals, thanks to a diversified basket and smartphone exports boom. TN grew its share from 8.4 per cent in FY22 to 9.1 per cent in FY23 and almost 10 per cent in FY24.
In terms of absolute values, TN was the only State in the top five that saw a rise in exports in a year of subdued global trade in FY24. This was due to a 77 per cent year-on-year rise in electronics exports from FY23 to FY24 at $9.6 billion. Haryana, Telangana and Odisha were other States in the top 10 that grew their exports in FY24.
Total exports (goods + services) stood at $776 billion for FY24 almost flat from the previous fiscal. While merchandise exports fell, services helped push up overall trade. State-wise split of services trade is not available. However, given that software and business services offered by global capability centres dominate services exports, analysts note that Karnataka, TN and Telangana are top three in services.
Product-wise share
Analysis of key products exported by the States gives insights into their changing shares.
A majority of Gujarat’s exports are those of petroleum products, followed by precious metals, gems and stones — both impacted by a volatile macro environment. Primary exports of Maharashtra include engineering goods and drugs and formulations, whereas TN exports are split between electronic goods, textiles, leather and non-leather goods and automotive.
“The focus of States on creating an investment base through a favourable investment climate along with better targeting of policies with an eye on the region’s strengths has created a larger impact in exports over time,” Rishi Shah, Partner, Grant Thornton, said.
Vishnu V, MD and CEO of TN’s investment promotion agency Guidance TN, says TN’s exports profile is more diversified and relatively better protected from external economic shocks. “Besides electronics, the State has a strong exports footprint of non-leather footwear, textiles, automotive among others. It is also among the top States in services exports,” he adds.
Analysts also caution that State-wise data is based on export document declarations and in some cases may reflect headquarters rather than place of production.