May 8, 2024
Key export markets include the US, UAE, Netherlands, China, UK, and Saudi Arabia
India's share of global merchandise exports increased marginally to 1.82%
Significant growth was witnessed in exports to emerging markets like Russia, Romania, and Albania
India Exim Bank projects a 12.3% rise in merchandise exports to US$ 116.7 billion for April-June of the current fiscal year
In the face of global economic uncertainties, India’s exports expanded to 115 countries out of 238 destinations in the fiscal year 2023-24, a significant achievement reported by the Ministry of Commerce. These destinations, which represent 46.5% of India’s total export volume, include significant markets such as the US, UAE, Netherlands, China, UK, Saudi Arabia, Singapore, Bangladesh, Germany, and Italy. Despite a 3% decline in merchandise exports to US$ 437.1 billion, services exports increased to US$ 341.1 billion, compared to US$ 325.3 billion in the previous fiscal year. This resilience in our export sector is a testament to India’s economic strength. Overall, combined goods and services exports reached their highest level at US$ 778.2 billion, a marginal growth of 0.23% from the previous year’s US$ 776.4 billion.
India’s share of global merchandise exports has not just marginally risen but significantly increased from 1.70% in 2014 to 1.82% in 2023, with its rank in global merchandise exporters improving from 19th to 17th during the same period. This upward trend is a testament to India’s growing influence in the global market. Notably, exports to the top 10 destinations saw a 13% year-on-year increase in 2023-24. The UAE emerged as the leading destination with a significant 12.71% growth in export value at$35.6 billion. Exports to Singapore, the UK, and China also experienced healthy growth rates, indicating sustained demand for Indian products. Furthermore, there’s been notable growth in exports to emerging markets like Russia, Romania, and Albania, suggesting a promising future for further market exploration and strengthening trade ties. This potential inspires us to continue our efforts to expand our export reach.
Exports to regions including CIS, Oceania, and Europe also witnessed expansion during 2023-24. The top five export destinations in these regions driving growth include countries like Russia, Uzbekistan, Ukraine, Australia, and the UK. On the commodities front, 17 items saw increased exports, constituting 48.4% of India’s export portfolio, with sectors like engineering, electronics, pharmaceuticals, and textiles leading the growth. However, key sectors like petroleum products, gems, and jewellery experienced declines, primarily due to decreased global demand and increased competition from other countries.
Regarding imports, India saw reduced imports from 124 countries out of 229 source nations in 2023-24. The top 10 source countries, accounting for 59.3% of India’s imports, include China, USA, Saudi Arabia, Indonesia, Russia, and Switzerland. Notable imports declined from countries like the UAE, Qatar, Kuwait, and Oman, which has significantly impacted India’s trade balance, highlighting the need for India to strengthen trade relations, particularly with GCC member nations.
India Exim Bank forecasts a promising 12.3% increase in merchandise exports to US$ 116.7 billion for April-June of the current fiscal year. This positive outlook is attributed to India’s robust GDP growth, sustained momentum in manufacturing and services sectors, and expected global demand due to easing monetary policies. However, risks remain, including uncertain prospects for advanced economies, geopolitical tensions, and regional crises, which could impact India’s export growth trajectory.
Source: Economic Times