New Delhi- India’s merchandise exports in October rose by an impressive 17.25 per cent year-on-year, highest in over two years, to USD 39.2 billion, while the trade deficit widened to USD 27.14 billion on a sequential basis.
According to the government data released on Thursday, imports increased by 3.9 per cent to USD 66.34 billion in October compared to USD 63.86 billion in the year-ago period, mainly due to a 13.34 per cent rise in crude oil imports.
The trade deficit (gap between imports and exports) narrowed as compared to USD 30.42 billion recorded in October last year. However, it has widened from USD 20.78 billion recorded in September this year.
The country’s merchandise exports have recorded the previous high growth of 30.12 per cent in June 2022.
During April-October this fiscal, exports increased by 3.18 per cent to USD 252.28 billion, and imports by 5.77 per cent to USD 416.93 billion.
The deficit during the latest seven-month period was USD 164.65 billion as compared to USD 149.67 billion during April-October 2023.
The data showed that the estimated value of service exports during April-October 2024 increased to USD 215.98 billion from USD 191.97 billion in the same period last year. Imports during that period at USD 114.57 billion was also higher from USD 102.32 billion in April-October 2023.
Crude oil imports in October rose to USD 18.2 billion from USD 16.1 billion in the same month last year.
Gold and Silver imports, on the other hand, slightly dipped to USD 7.13 billion and USD 0.33 billion, respectively, during the month under review from the two comparable figures of USD 7.23 billion and USD 1.31 billion recorded in October 2023.
Commenting on the data, Commerce Secretary Sunil Barthwal said, “This has been an extremely good month for exports…If we continue in this manner, we will cross USD 800 billion of exports (goods and services together) this (fiscal) year.”
He said that the government’s strategy to focus on six sectors — engineering, electronics, pharma, chemicals, plastics and agriculture — as well as 20 countries is yielding positive result.
These 20 countries account for 60 per cent of the total global imports and these six segments have a share of 67 per cent in global imports.
The commerce ministry has undertaken deeper economic integration in these nations through market access initiatives, promotion of brand India, addressing non-tariff barriers, and conducting trade promotion events.
“We are formulating strategies to promote exports in these focus countries and I am sure that the strategy will help us in showing excellent result by end of this year,” he added.
Healthy christmas demands could be one of the reasons for exports to register double digit growth in October.
At export front, engineering exports rose by 39.37 per cent to USD 11.25 billion. Petroleum product shipments dipped by 22 per cent to USD 4.58 billion.
Electronic exports jumped by 45.7 per cent to USD 3.43 billion during the month, while its imports grew by 6.8 per cent to USD 8.35 billion.
Commenting on the continued export growth in ready-made garments, Sudhir Sekhri, Chairman, AEPC (apparel export promotion council), said the industry has been successfully leveraging India’s raw material strength and manufacturing the traditional as well as modern design products. It was up 35 per cent to USD 1.22 billion.
“Our constant endeavour to be sustainable and affordable is a great attraction for the international buyers, which is reflected in recent months’ exports growth,” he said.
FIEO (Federation of Indian Export Organisations ) President Ashwani Kumar said that the double-digit growth in merchandise exports, amidst continuing global economic uncertainties, is “definitely very encouraging sign of revival”.
However, he added that the rising tensions between Israel-Iran has continuously led to logistical challenges with regard to international trade getting impacted as most of our trade to Europe, Africa, CIS and Gulf region are happening through the Red Sea route or the gulf region prompting buyers to have little large inventories.