1 week ago
Lahiri urges India to diversify exports beyond five dominant states
India sells many goods and services to other countries.
Ashok Lahiri said most of these exports come from five states.
These states are Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh.
He also said India relies heavily on a small number of products and markets.
Lahiri wants more states and industries to take part in exporting.
He said this could help India improve technology, product quality and foreign investment.
He warned that India may miss its $1 trillion exports goal for 2026-27.
He also said India may need more investment to keep growing at its current pace.
Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh generate nearly 70 per cent of India’s exports.
Ashok Lahiri said India’s exports are concentrated in engineering goods, refined petroleum, electronics, gems and jewellery, and pharmaceuticals.
He called for diversification across export products, states of origin and destination markets.
Lahiri warned that global uncertainty and tariff wars could cause India to miss its $1 trillion exports target for 2026-27.
He said investment must rise above 30 per cent of GDP as India’s economy becomes more complex.
- Who
- Ashok Lahiri, vice-chairman of NITI Aayog, discussed India’s exports and investment needs.
- What
- Lahiri called for greater diversification of India’s export products, states of origin and destination markets.
- Where
- At the 11th foundation day of Bandhan Bank; the location was not stated.
- When
- Sunday; the specific date was not stated.
- Why
- To reduce concentration risks, improve technology and product quality, deepen participation in global value chains, and attract foreign investment.
Key facts
- Export concentration
- Five states account for nearly 70 per cent of India’s total exports.
- Leading states
- Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh.
- Major export categories
- Engineering goods, refined petroleum, electronics, gems and jewellery, and pharmaceuticals.
- Exports target
- India’s combined goods and services exports target is $1 trillion for 2026-27, though Lahiri said it may be missed and moved to 2027-28.
- Current investment rate
- About 30 per cent of GDP.
- Growth supported
- The current investment rate supports growth of about 6-6.5 per cent.
- Comparative ICOR
- India’s ICOR is estimated at 4.5-5, compared with 14-17 in China and about 5.8-6 in Vietnam.
Quotes
Ashok Lahiri
Niti Aayog vice-chairman discussing India’s export concentration
“Moreover, just five states — Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh — generate 70 per cent of the country’s total shipments. We need to diversify both our export basket as well as our states of origin and export destination.”
telegraphindia.com
“The goal may be missed due to the global uncertainties in general and the tariff war in particular, and has been rolled over — to 2027-28”
telegraphindia.com
Sources
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