India’s exports grew by a healthy 45.1 per cent to touch $33.14 billion in August compared to the corresponding month in the previous year, primarily driven by 80 products.

First the good news. According to the State Bank of India’s Ecowrap, the country’s exporters have already achieved 41 per cent of the total exports target set for the current financial year.

India had set a target of $400 billion in merchandise exports for the current fiscal year compared to $291.2 billion in the previous fiscal year.

Individually, diamond exports have the largest share at 6 per cent followed by diesel fuel at 5 per cent.

Also read: India– Sri Lanka's 2nd largest trading partner– worried as economic crisis hits the island nation

The report noted that certain agri based products like residues and wastes from food industries, animal fodder, coffee, tea, mate and spices and labour-intensive products like carpets and footwear have exited the top commodity export list. Meanwhile, certain components like aluminium and articles thereof and Ships, Boats and Floating structures exports have grown rapidly and are now part of the top exports.

Now the caveat: The core exports base has remained static with gems and jewellery and petroleum products being the most prominent components. “Both have an inherent volatility and this subjects India’s overall exports to overall volatility,” the report said, adding that by increasing the share of machinery among the engineering products, electronics, drugs and pharmaceuticals, India can offset this volatility to an extent.

“It has to be kept in mind that the primary engine of growth for India remains consumption and unless that improves it is difficult for India to achieve higher growth on a sustained basis,” the report said.