New Delhi: Cumulative overall exports from April-August 2024 are estimated at USD 374.33 billion when compared to USD 350.11 billion during the same period in 2023, reflecting a growth of 5.35%, according to the latest data released by the Ministry of Commerce and Industry.
In August 2024, merchandise exports totalled USD 34.71 billion, which is down from USD 38.28 billion in August 2023. For the cumulative period of April to August current financial year, merchandise exports amounted to USD 178.68 billion, compared to USD 176.67 billion in the same period of last year, showing a growth of 1.14%. Non-petroleum and non-gems & jewellery exports increased by 2.35%, rising from USD 26.14 billion in August 2023 to USD 26.76 billion in August 2024.
Major drivers of merchandise export growth in August 2024 include engineering goods, organic and inorganic chemicals, electronic goods, ready-made garments (RMG) of all textiles and drugs and pharmaceuticals.
Engineering goods exports rose by 4.36%, from USD 9.05 billion in August 2023 to USD 9.44 billion in August 2024. Organic and inorganic exports increased by 8.32% while electronic goods exports grew by 7.85%. RMG of all textiles saw an increase of 11.88%, drugs and pharmaceuticals exports rose by 4.67%.
Reacting to the August merchandise exports of USD 34.71 billion, which saw a decline of over 9 per cent, FIEO President Ashwani Kumar attributed the sharp decline to ongoing global economic uncertainties, a drop in commodity prices and logistical challenges. Ashwani Kumar noted that international trade disruptions, coupled with decreased crude and metal prices, have impacted export values. Some exporters have shifted focus to the domestic market due to decreased profitability from exports amid rising international freight costs.
FIEO emphasised the urgent need for measures to address liquidity issues, such as deeper interest subvention support and extending the interest equalisation scheme for at least five years. He also advocated for creating a predictable business environment for exporters through easier and lower-cost credit, marketing support and the swift conclusion of key Free Trade Agreements (FTAs) with the UK, Peru and Oman, which FIEO has been urging the government to prioritise.
Besides FIEP Engineering Exports Promotion Council (EEPC) India Chairman Arun Kumar Garodia said that despite several global challenges, Indian engineering exports registered positive year-on-year growth for the fourth month in a row in August 2024 and rose 4.36% year-on-year to US$9.44 billion from US$9.05 billion in the corresponding month last year.
He said that the performance would have certainly been much better had it not been for the significant decline in iron and steel exports. Over the past many months, the decline in iron and steel exports has been majorly responsible for the muted performance of engineering exports from India. This could be partly attributed to very competitive pricing from China, geopolitical conflicts in Europe and West Asia and protectionist policies in the USA and EU.
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