Indian exports reach a record US$ 776.68 bn in FY24

The overall trade deficit saw a significant improvement of 35.77%

April 16, 2024

In March, merchandise exports experienced a slight decline of 0.67% to US$ 41.68 billion

Merchandise exports for the fiscal year amounted to US$ 437.06 billion

In the services sector, exports expanded by 4.39% to US$ 339.62 billion, while imports contracted by 2.46% to US$ 177.56 billion

Easing of the merchandise trade deficit in March 2024 bodes well for India's current account balance in the fourth quarter of FY2024

India’s exports reached a historic high of US$ 776.68 billion in the fiscal year ending on March 31, despite global challenges, according to provisional data released by the commerce ministry on Monday. While this represented a marginal increase from the previous year’s record of US$ 776.40 billion, it showcased resilience amidst a 3.11% contraction in merchandise exports, offset by robust services exports, which grew by 4.4% to a record US$ 339.62 billion.

The overall trade deficit saw a significant improvement of 35.77%, declining from US$ 121.62 billion in FY23 to US$ 78.12 billion in FY24. Commerce Secretary Sunil Barthwal attributed this positive growth to the government’s strategic initiatives in exploring new markets and diversifying the export basket. He emphasized the importance of maintaining momentum amid global geopolitical tensions, including conflicts in Ukraine and Gaza.

Despite challenges, India’s exporters demonstrated preparedness for the fiscal year 2024-25, with a focus on new markets and products. However, Barthwal acknowledged the need to address emerging challenges, such as the Israel-Iran conflict.

In March, merchandise exports experienced a slight decline of 0.67% to US$ 41.68 billion, while imports fell sharply by 5.98% to US$ 57.28 billion. Merchandise exports for the fiscal year amounted to US$ 437.06 billion, down by 3.11% from the previous year, while imports fell by 5.41% to US$ 677.24 billion.

In the services sector, exports expanded by 4.39% to US$ 339.62 billion, while imports contracted by 2.46% to US$ 177.56 billion. Ashwani Kumar, President of the Federation of Indian Export Organisations (FIEO), commended the resilience of sectors such as electronic goods, pharmaceuticals, engineering goods, and textiles, which drove export growth despite global challenges.

Aditi Nayar, Chief Economist at ICRA Ltd, noted that the easing of the merchandise trade deficit in March 2024 bodes well for India’s current account balance in the fourth quarter of FY2024. The decline in imports, particularly in categories like gold and non-oil non-gold items, contributed to this positive trend, indicating a favourable outlook for India’s trade balance in the near term.

Source: Hindustan Times

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