 "Manufacturing exports plummet from 18% in FY13 to just 1.8% in FY24, signaling a dramatic decline in international sales.")
In a concerning trend for India’s manufacturing sector, the share of exports in total sales has plummeted by nearly two-thirds over the last decade, ending in the financial year 2022-23. Exports once made up over 18 percent of manufacturing sales in FY13, but this figure dropped dramatically to just 6.8 percent in FY23. Early estimates for FY24 indicate a further decline, with exports now accounting for only 1.8 percent of sales. This data, sourced from the Centre for Monitoring Indian Economy and based on information from 961 companies, highlights a significant shift in the reliance on foreign markets for revenue, raising questions about the future of manufacturing beyond domestic demand.
Title: Decline in Export Contributions: Manufacturing Sector Faces Challenges
The share of exports in the sales of manufacturing companies has seen a dramatic decline over the past decade, dropping by nearly two-thirds by the end of the financial year 2022-23 (FY23). New data for FY24 suggests this downward trend may be continuing.
According to research from the Centre for Monitoring Indian Economy (CMIE), exports constituted more than 18 percent of manufacturing sales in FY13. However, by FY23, this figure plummeted to just 6.8 percent, and early figures for FY24 show it has further decreased to a mere 1.8 percent. This analysis is based on information from 961 companies, both listed and unlisted, that report their foreign exchange earnings.
The significant drop in export contributions raises concerns about the competitiveness of the Indian manufacturing sector in global markets. Stakeholders are keenly observing how these trends will impact the industry moving forward.
Tags: Manufacturing, Exports, Economic Trends, CMIE, Industry Analysis, Financial Year 2023-24, Indian Economy, Business News, Market Insights
What is happening with the export share of manufacturing companies’ sales?
The export share of manufacturing companies’ sales is dropping close to its lowest point ever.
Why is this decline in exports important?
This decline is important because it can indicate problems in the economy, such as lower demand for goods from other countries.
What factors are causing the drop in exports?
Several factors can cause the drop, including global economic issues, trade policies, and competition from other countries.
How does this affect the economy?
A lower export share can hurt job growth in manufacturing and lead to decreased revenue for companies, affecting the overall economy.
What can companies do to improve their export sales?
Companies can explore new markets, improve product quality, and strengthen Marketing strategies to boost their export sales.
