India And South Korea Shine In Exports – OpEd

India and South Korea have increased their exports in 2024, a good sign for their growth of gross domestic product (GDP).

According to the Economic Times newspaper, India’s overall exports of goods and services in 2024 has estimated to cross US$814 billion, an increase of 5.58 percent.

This was according to a report by economic think tank Global Trade Research Initiative (GTRI). In 2023, the country’s merchandise and services exports stood at $768.5 billion.

According to the International Monetary Fund (IMF)’s 2025 prediction, India will be the fourth largest economy in the world with its GDP of $4.34 trillion. This year, the report estimated that in 2024, merchandise exports are expected to reach $441.5 billion, showing a modest 2.34 percent increase over $431.4 billion in the previous year.

According to the Economic Times newspaper, Indian Commerce and Industry Minister Piyush Goyal said despite global economic uncertainties, India’s exports of goods and services are expected to cross $800 billion this fiscal, which will be a record. Last fiscal year, the exports stood at $778 billion.

He said though there will be stresses in the global system, but India’s exports basket is large. “My estimate is that we will cross $800 billion in exports, another record given the world situation,” the Economic Times reported quoting Goyal as saying.

In contrast, the services exports are estimated to grow by 10.31 percent to $372.3 billion, up from $337.5 billion in 2023. “India’s total exports, encompassing merchandise and services, are projected to exceed $814 billion in 2024, reflecting a 5.58 percent growth compared to $ 768.5 billion in 2023,” the Economic Times reported quoting the report.

Sectors such as machinery and electronics are gaining prominence, with machinery’s share in the export basket rising to 6.9 percent in 2024 from 3.8 per cent in 2014 and electronics climbing to 7.9 per cent in 2024 from 3.3 percent in 2014.

Traditional sectors of exports, however, are witnessing a decline. Textiles and garments, which accounted for 21.1 percent of exports in 2004, now represent just 8 percent, while gems and jewellery have dropped from 16.9 per cent in 2004 to 7.5 percent in 2024.

The coming year poses significant challenges for Indian exports, adding that the global trade growth remains sluggish, hampered by slow economic recovery in developed markets and geopolitical tensions like the Russia-Ukraine war and the Israel-Hamas conflict.

According to The Korea Times newspaper, South Korea’s exports advanced 8.2 percent on-year in 2024 to set a new annual record on robust shipments of semiconductors, data showed recently.

Outbound shipments came to $683.8 billion last year, compared with the previous record of $683.6 billion set in 2022, according to the data compiled by the Ministry of Trade, Industry and Energy.

Imports fell 1.6 on-year to $632 billion, resulting in a trade surplus of $51.8 billion.

At present, South Korea is the 12^th largest economy with its GDP of $1.87 trillion. By sector, exports of semiconductors rose 43.9 percent on-year to $141.9 billion, surpassing the previous record of $129.2 billion set in 2022.

The strong performance of chips, according to The Korea Times, was driven by robust demand for premium products, including high-bandwidth memory chips, despite the overall decline in global semiconductor prices.

Outbound shipments of automobiles edged down 0.1 percent to $70.8 billion due to production disruptions caused by strikes by auto parts makers in the second half, the ministry said.

Other major winners included the biohealth industry, whose exports climbed 13.1 percent on-year to $15.1 billion on the strong performance of biosimilar products.

By destination, exports to China, the top trading partner, increased 6.6 percent to $133 billion, led by chips, petrochemical products and mobile devices.

Shipments to the United States grew 10.5 percent to $127.8 billion, reaching a new annual high for the seventh consecutive year. Exports to Southeast Asia rose 4.5 percent to $114 billion on the back of chips and petroleum products, the data showed.

Imports rose 3.3 percent to $54.8 billion in the month, resulting in a trade surplus of $6.49 billion. Korea has been maintaining a trade surplus for 19 consecutive months.

In December, exports of chips jumped 41.5 percent to $14.5 billion, setting a new monthly high. Exports of automobiles shed 5.3 percent to $6 billion, while those of petrochemical goods gained 1.8 percent to $3.9 billion.

By region, exports to China added 8.6 percent on-year to $11.8 billion in December, with those to the U.S. rising 5.5 percent to $11.9 billion.

“Despite high global interest rates and inflation, along with the Russia-Ukraine war and the Middle East crisis, Korea achieved record exports and a trade surplus thanks to the unwavering efforts of exporters,” The Korea Times reported quoting Industry Minister Ahn Duk-geun as saying. “With the launch of a new U.S. administration just a month away, the government will work closely with the private sector to minimize the negative impact of overseas uncertainties,” Ahn said. 

India and South Korea showed excellent growth in exports in 2024.