Exports Increased by 6.88% In the First Month of This Fiscal Year; Experts Term It a Positive Note

According to the government in April 2024, merchandise exports rose by 1.08% to reach USD 34.99 billion, compared to USD 34.62 billion in April 2023. The primary contributors to this growth were electronic goods, organic and inorganic chemicals, petroleum products, and drugs and pharmaceuticals. Reports ETV Bharat's Saurabh Shukla.

New Delhi : India's total exports (combining merchandise and services) for April 2024 are estimated at USD 64.56 billion, reflecting a positive growth of 6.88% compared to April 2023. This is as per the Ministry of Commerce & Industry's latest data.

Total imports (merchandise and services combined) for April 2024 are projected at USD 71.07 billion, marking a positive growth of 12.78% compared to April 2023. In April 2024, Merchandise exports increased by 1.08% to USD 34.99 billion, up from USD 34.62 billion in April 2023. Non-petroleum & Non-Gems & Jewellery exports saw a rise of 1.32% from USD 25.77 billion in April 2023 to USD 26.11 billion in April 2024.

The primary drivers of merchandise exports growth in April 2024 were Electronic Goods, Organic & Inorganic Chemicals, Petroleum Products, and Drugs & Pharmaceuticals. Also electronic goods exports surged by 25.8% from USD 2.11 billion in April 2023 to USD 2.65 billion in April 2024.

Export Growth: Moreover, exports of Organic and Inorganic Chemicals increased by 16.75% from USD 2.14 billion in April 2023 to USD 2.50 billion in April 2024. Drugs and pharmaceuticals exports rose by 7.36% from USD 2.26 billion in April 2023 to USD 2.43 billion in April 2024. Meanwhile, Petroleum products exports saw a 3.10% increase from USD 6.42 billion in April 2023 to USD 6.62 billion in April 2024.

In April 2024, within merchandise exports, 13 out of the 30 key sectors saw positive growth compared to the same period last year (April 2023). These sectors include Electronic Goods (25.8%), Tea (25.74%), Organic & Inorganic Chemicals (16.75%), Coffee (15.87%), Tobacco (13.22%), Spices (12.27%), Drugs & Pharmaceuticals (7.36%), Cotton Yarn/Fabs./Made-Ups, Handloom Products etc. (6.65%), Carpet (5.64%), Cereal Preparations & Miscellaneous Processed Items (5.33%), Petroleum Products (3.1%), Plastic & Linoleum (2.99%), and Handicrafts Excl. Handmade Carpet (2.36%).

As for merchandise imports in April 2024, 14 out of 30 key sectors experienced negative growth. These sectors include Sulphur & Unroasted Iron Pyrites (-71.75%), Pearls, Precious & Semi-Precious Stones (-21.12%), Cotton Raw & Waste (-16.31%), Wood & Wood Products (-14.11%), Coal, Coke & Briquettes, etc. (-11.71%), Artificial Resins, Plastic Materials, etc. (-10.26%), Fertilisers, Crude & Manufactured (-8.3%), Iron & Steel (-8.28%), Chemical Material & Products (-7.69%), Organic & Inorganic Chemicals (-5.19%), Machinery, Electrical & Non-Electrical (-3.54%), Dyeing/Tanning/Colouring Materials (-2.63%), Pulp and Waste Paper (-2.2%), and Transport Equipment (-0.22%).

Government data indicates that services exports are projected to grow by 14.68% in April 2024 compared to April 2023.

Expert's View: Ajay Sahai, Director General & CEO of the Federation of Indian Export Organisations, exclusively told ETV Bharat that given the geopolitical situations and added uncertainty, it's good that we are commencing on a positive note. He mentioned that the order booking position of Indian exporters is significantly better compared to the previous year. Therefore, he emphasized the need to aim for an increase in exports by around 15 percent in this fiscal year.

Co-Founder of Global Trade Research Initiative (GTRI) Ajay Srivastava told ETV Bharat that India's foreign trade landscape presents a compelling narrative of resilience and transformation. India’s trade (exports and imports of merchandise and services) surpassed US$1.6 trillion, accounting for about 42% of its GDP. This is no small feat for an economy that continues to integrate more deeply into the global market despite prevailing challenges.

He also added that as policymakers and business leaders navigate these turbulent waters, the focus should be on enhancing competitiveness, promoting sectors with high domestic value addition, and diversifying trade partnerships. This approach will not only cushion against global economic shocks but also ensure sustainable growth in India’s foreign trade.

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