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Gujarat tops in share of India’s exports, aided by soaring petroleum product prices

The western state accounted for about 30 percent of India’s export earnings in 2021-22, with the value of its exports doubling

June 16, 2022 / 02:10 PM IST
(Representative image)

(Representative image)

Gujarat accounted for the biggest chunk of India’s exports last year, bolstered by a jump in the value of petroleum products and diamond shipments, among other items.

The western state’s share in the country’s total exports of $421.9 billion in FY22 was estimated at $126.8 billion, data from the Directorate General of Commercial Intelligence and Statistics in the ministry of commerce and industry showed.

For every dollar earned from India’s exports, 30 cents worth of goods originated in Gujarat, up from about 21 cents in FY21. The value of exports from the state more than doubled in one year.

In contrast, the shares of Maharashtra and Tamil Nadu – the second- and third-largest contributors, respectively – shrank even after their exports grew robustly.

States export

Gujarat’s biggest exports were petroleum products – diesel, petrol, aviation turbine fuel and other distillates – produced at refineries owned by Reliance Industries and Nayara Energy.

Jamnagar, where Reliance Industries operates the world’s largest refining hub, emerged as the district that contributed the most to exports. The district of Devbhumi Dwarka, where Nayara has its refinery, was the 12th-largest contributor to export earnings.

States export 2

The Nayara refinery was originally set up by the Essar Group. Russia’s Rosneft and others acquired a controlling stake in the project in 2017.

The commerce ministry data showed that six Gujarat districts were among the top 20 contributing the most to exports. These included Surat, famous for diamond processing, and Ahmedabad.

Earnings rise, share falls

Maharashtra’s share in export earnings declined to about 17 percent in FY22 from about 20 percent in FY21 even after a 25 percent growth in the value of its exports. Maharashtra was the top exporter till FY20. Mumbai, Mumbai Suburban, Pune and Thane were among the top districts from the state contributing to export of goods. Diamonds and jewellery were among the top exports from Mumbai and Mumbai Suburban districts.

States export 3

Tamil Nadu’s share in exports slipped to 8.3 percent from 9 percent after a robust 34 percent growth. About 28 percent of the southern state’s exports originated in Kanchipuram district and another 16 percent in Chennai. Kanchipuram emerged as the seventh-largest contributor to export earnings among all districts of the country, primarily due to the automobile manufacturing hub in the town of Sriperumbudur.

Andhra, Karnataka swap ranks

While the ranking of the top three contributors of exports did not change in FY22, Andhra Pradesh and Karnataka swapped their fourth and sixth positions, respectively, as exports from Karnataka rose 71 percent compared to a 15 percent growth in Andhra Pradesh. Karnataka gained from the rise in petroleum prices as Mangaluru-based Mangalore Refinery and Petrochemicals exports diesel, ATF and other distillates.

Karnataka’s share in the nation’s exports climbed to 6.1 percent from 5.2 percent in FY21, while that of Andhra Pradesh declined to 4.6 percent from 5.8 percent.

Also Read | The two hurdles that stand in the way of India’s exports ambition

Uttar Pradesh’s share in exports declined to 5 percent from 5.6 percent, but it held on to its position as the fifth-largest contributor of exports, with Gautam Buddha Nagar (comprising Noida) the ninth-largest exporting district in the country. Mobile phones were among the chief exports from Gautam Buddha Nagar.

Commodity cycle impact

A sharp rise in commodity prices aided the almost 45 percent rise in exports in FY22. Petroleum product exports jumped 161 percent from the previous year as prices climbed to multi-year highs. Volumes also grew from the previous year as economies emerged out of lockdowns.

The share of petroleum products in exports climbed to about 16 percent from less than 9 percent a year earlier.

The value of exported items in the trade basket grew but there was only a marginal change in their share in earnings. Shipments of pearls and precious and semi-precious stones climbed over 52 percent as households splurged money that they would have otherwise spent on contact-intensive services and travel on expensive and luxury goods. However, its share in export earnings rose to 6.6 percent from 6.2 percent. Exports of jewellery made of gold and other precious metals rose 67 percent, but its share in exports rose incrementally to 2.6 percent.

Iron and steel exports soared 89 percent, bolstered by rising prices and demand. Its share of exports improved to 5.4 percent from 4.1 percent.
Tina Edwin is a senior financial journalist based in New Delhi.
first published: Jun 16, 2022 02:03 pm