{"id":62542,"date":"2025-12-24T18:30:47","date_gmt":"2025-12-24T13:00:47","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=62542"},"modified":"2025-12-24T18:31:53","modified_gmt":"2025-12-24T13:01:53","slug":"concentration-of-indias-exports","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/24-12-2025\/concentration-of-indias-exports","title":{"rendered":"Concentrated of India&#8217;s Exports in Few States"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The RBI Handbook of Statistics on Indian States 2024\u201325 reveals that export growth is increasingly concentrated in a few developed coastal and industrial States, masking deep regional and employment-related challenges.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Pattern in India\u2019s Exports<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rising dominance of few States: <\/strong>The top <strong>10 States<\/strong> now account for over <strong>91 percent<\/strong> of India\u2019s exports in FY25, up from 84 percent in FY22.\n<ul class=\"wp-block-list\">\n<li><strong>The top five States<\/strong>, Gujarat, Maharashtra, Tamil Nadu, Karnataka and Uttar Pradesh, together contribute nearly <strong>70 percent<\/strong> of national exports.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Regional divergence: <\/strong>Coastal western and southern States are integrating deeper into global supply chains.\n<ul class=\"wp-block-list\">\n<li>Large parts of northern and eastern India are gradually decoupling from the trade engine.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e2d0b4\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"765\" height=\"394\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/12\/image-132.png\" alt=\"\" class=\"not-transparent wp-image-62559\" style=\"--dominant-color: #e2d0b4; width:402px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/12\/image-132.png 765w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/12\/image-132-300x155.png 300w\" sizes=\"auto, (max-width: 765px) 100vw, 765px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Reasons Behind Export Concentration<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Infrastructure advantages: <\/strong>Coastal States benefit from ports, industrial corridors, multimodal logistics and proximity to global markets.<\/li>\n\n\n\n<li><strong>Agglomeration economies: <\/strong>Established industrial ecosystems attract capital, skilled labour, suppliers and ancillary industries, reinforcing dominance.<\/li>\n\n\n\n<li><strong>Shift from cost to complexity:<\/strong> Global capital increasingly favours regions with high economic complexity, diversified export baskets and strong institutional capacity.<\/li>\n\n\n\n<li><strong>Global trade constraints: <\/strong>WTO data shows global merchandise trade growth slowing to <strong>0.5\u20133 percent,<\/strong> while UNCTAD estimates suggest the top 10 exporters control around<strong> 55 percent<\/strong> of global trade.\n<ul class=\"wp-block-list\">\n<li>This intensifies competition and favours already-integrated regions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Financial depth asymmetry:<\/strong> High-export States like Tamil Nadu and Andhra Pradesh record Credit\u2013Deposit ratios above 90 percent, enabling local savings to fund local industry.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Impact of Export Concentration<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Regional inequality: <\/strong>Coastal western and southern States integrate deeper into global trade, while northern and eastern regions decouple.<\/li>\n\n\n\n<li><strong>Fragile export resilience:<\/strong> Over-reliance on a few States and sectors heightens vulnerability to regional or sector-specific shocks.<\/li>\n\n\n\n<li><strong>Limited job creation:<\/strong> Export growth no longer guarantees mass employment, weakening its role as a development lever.<\/li>\n\n\n\n<li><strong>Fiscal and social stress:<\/strong> Persistent regional divergence strains cooperative federalism and inclusive growth objectives.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives to Improve Hinterland Export Competitiveness<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Districts as Export Hubs (DEH): <\/strong>It aims to transform each district into an export hub by focusing on infrastructure development (processing, testing, logistics) and capacity building of local producers.\n<ul class=\"wp-block-list\">\n<li>It is integrated with <strong>One District One Product (ODOP) <\/strong>for decentralised and balanced export promotion.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Export Promotion Mission (EPM)<\/strong> is India&#8217;s new, unified <strong>six-year program<\/strong> (FY 2025-2031) to explicitly prioritises;\n<ul class=\"wp-block-list\">\n<li>Non-traditional districts and landlocked States.<\/li>\n\n\n\n<li>Labour-intensive and MSME-driven exports.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Agriculture Export Policy &amp; APEDA Financial Assistance Scheme (FAS)<\/strong> targets agricultural and processed food exports from rural and inland areas.<\/li>\n\n\n\n<li><strong>Towns of Export Excellence (TEE):<\/strong> Identifies towns with sector-specific export potential (handicrafts, handlooms, textiles, leather). It provides financial assistance, technical upgradation, skill development, and export marketing support.<\/li>\n\n\n\n<li><strong>PM Gati Shakti National Master Plan &amp; National Logistics Policy (NLP):<\/strong> It aims to reduce India\u2019s logistics cost and improve trade efficiency. It benefits for hinterland regions with\n<ul class=\"wp-block-list\">\n<li>Improved road, rail, inland waterway, and multimodal connectivity.<\/li>\n\n\n\n<li>Development of dry ports, logistics parks and freight corridors.<\/li>\n\n\n\n<li>Faster movement of goods from production centres to ports.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Strengthen district-level institutions, logistics, finance, and skill ecosystems to enable hinterland regions to enter medium- and high-complexity export value chains.<\/li>\n\n\n\n<li>Complement export growth targets with metrics on employment generation, regional dispersion, and value-chain integration to ensure inclusive and balanced trade-led development.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/how-exports-are-concentrated-in-few-states\/article70429584.ece#:~:text=In%20export%20powerhouses%20like%20T\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">The RBI Handbook of Statistics on Indian States 2024\u201325 reveals that export growth is increasingly concentrated in a few developed coastal and industrial States, masking deep regional and employment-related challenges.\n<\/li>\n<p><\/p>\n<p><strong>Pattern in India\u2019s Exports<br \/>\n<\/strong><\/p>\n<li class=\"ms-5\">Rising dominance of few States: The top 10 States now account for over 91 percent of India\u2019s exports in FY25, up from 84 percent in FY22.\n<\/li>\n<li class=\"ms-5\">The top five States, Gujarat, Maharashtra, Tamil Nadu, Karnataka and Uttar Pradesh, together contribute nearly 70 percent of national exports.\n<\/li>\n<li class=\"ms-5\">Regional divergence: Coastal western and southern States are integrating deeper into global supply chains.\n<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/24-12-2025\/concentration-of-indias-exports\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-62542","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/62542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=62542"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/62542\/revisions"}],"predecessor-version":[{"id":62561,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/62542\/revisions\/62561"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=62542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=62542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=62542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}