Exports: Powerhouse of Stable Economy

Exports is a major driver of a strong and stable economy. As of the latest data from June 2024, India's export sector is showing promising growth, despite global economic challenges. Merchandise exports increased by 2.55 per cent year-over-year, reaching USD35.20bn. For the quarter ending June 2024, total exports (including services) rose by 8.6 per cent compared to the same period in 2023, amounting to USD109.96bn.

Key sectors driving this growth include engineering goods, electronic goods, and pharmaceuticals, which saw year-over-year increases of 10.27 per cent, 16.91 per cent, and 9.93 per cent, respectively. Coffee exports also surged by a notable 70 per cent during the same period. The growth in these sectors reflects both strong demand and improved production capacities within India.

Export themes in India currently revolve around a few key factors that are driving the country's trade and economic policies. Here’s a summary:

Diversification of Export Markets: India is increasingly focusing on diversifying its export markets, reducing dependency on traditional markets like the US and Europe, and exploring opportunities in Africa, Latin America, and Southeast Asia.

Promotion of Manufacturing: With initiatives like "Make in India," the government is pushing to enhance manufacturing capabilities, which is essential for boosting exports. Sectors like pharmaceuticals, textiles, and electronics are being promoted.

Trade Agreements: India is actively negotiating and entering into new trade agreements, such as the ones with Australia, the UK, and the EU, to gain better access to global markets and boost exports.

Focus on High-Value Sectors: There’s a shift towards exporting higher-value products, like technology, services, and specialized manufactured goods, which can fetch better returns compared to traditional exports like textiles or agricultural products.

Resilient Supply Chains: In the wake of global disruptions, India is aiming to position itself as a reliable partner in global supply chains, particularly in sectors like pharmaceuticals, electronics, and automotive components.

Sustainability and Green Exports: There’s an emerging focus on sustainable products and green technologies. India is looking to boost exports in sectors like renewable energy and eco-friendly products as global demand for such goods rises.

These themes are being driven by a combination of domestic economic policies and global trade dynamics.

Investors are requested to note that as per SEBI (Mutual Funds) Regulations, 1996 and guidelines issued thereunder, HSBC AMC, its employees and/or empaneled distributors/agents are forbidden from guaranteeing/promising/assuring/predicting any returns or future performances of the schemes of HSBC Mutual Fund. Hence please do not rely upon any such statements/commitments. If you come across any such practices, please register a complaint via email at investor.line@mutualfunds.hsbc.co.in.

Views provided above are based on information available in the public domain at this moment and subject to change. Investors should not consider the same as investment advice. Please consult your financial advisor for all your investment decision.

This document has been prepared by HSBC Asset Management (India) Private Limited (HSBC) for information purposes only with an intent to provide market overview and should not be construed as an offer or solicitation of an offer for purchase of any of the funds of HSBC Mutual Fund. All information contained in this document (including that sourced from third parties), is obtained from sources, which HSBC/ third party, believes to be reliable but which it has not been independently verified by HSBC/ the third party. Further, HSBC/ the third party makes no guarantee, representation or warranty and accepts no responsibility or liability as to the accuracy or completeness of such information. The information and opinions contained within the document are based upon publicly available information and rates of taxation applicable at the time of publication, which are subject to change from time to time. Expressions of opinion are those of HSBC only and are subject to change without any prior intimation or notice. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed or recommended in this report and should understand that the views regarding future prospects may or may not be realised. Neither this document nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions.

This document is intended only for those who access it from within India and approved for distribution in Indian jurisdiction only. Distribution of this document to anyone (including investors, prospective investors or distributors) who are located outside India or foreign nationals residing in India, is strictly prohibited. Neither this document nor the units of HSBC Mutual Fund have been registered under Securities law/Regulations in any foreign jurisdiction. The distribution of this document in certain jurisdictions may be unlawful or restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. If any person chooses to access this document from a jurisdiction other than India, then such person do so at his/her own risk and HSBC and its group companies will not be liable for any breach of local law or regulation that such person commits as a result of doing so.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

© Copyright. HSBC Asset Management (India) Private Limited 2024, ALL RIGHTS RESERVED.

HSBC Asset Management (India) Private Limited, 9-11 Floors, NESCO IT Park, Building no. 3, Western Express Highway, Goregaon (East), Mumbai – 400 063, India. Website: www.assetmanagement.hsbc.co.in