India has had a robust 12 per cent annualised growth in merchandise exports, amounting to USD 41.4 billion in February, despite facing global headwinds. This growth has narrowed the contraction in the first 11 months of 2023-24 by 3.6 per cent, reaching USD 395 billion.
Services exports for February were estimated at USD 32.15 billion, marking a 17.3 per cent year-on-year increase compared to February 2023’s figure of USD 27.4 billion. Data released by the commerce ministry indicated a cumulative rise of seven per cent in services exports, reaching USD 314.82 billion from April 2023 to February 2024, as opposed to USD 294.89 billion in the same period of FY23.
It’s worth noting that services data for February are extrapolated from the previous month’s figures, as the Reserve Bank of India (RBI) releases service sector statistics with a delay.
Commerce Secretary Sunil Barthwal expressed optimism about surpassing last year’s export figures by March end. He highlighted that in 2022-23, India’s merchandise exports exceeded USD 451 billion, while the overall exports, including goods and services, reached a record USD 770 billion. In the first 11 months of 2023-24, overall exports stand at USD 709.81 billion, marking a 0.83 per cent growth over the same period in the previous fiscal year.
Barthwal praised Indian exporters for their remarkable achievements despite facing challenges such as the Russia-Ukraine conflict, recessions in various markets and disruptions in logistics due to incidents in the Red Sea.
The key drivers of exports in February were engineering goods, electronic goods, chemicals, petroleum products, drugs and pharmaceuticals. Engineering goods saw a 15.9 per cent year-on-year growth, while electronic goods witnessed a significant 55 per cent growth. Notably, India and Korea dominated the US market in terms of smartphone exports, with India holding a larger share while the shares of China, Vietnam and Hong Kong declined.
India recorded a trade deficit of USD 18.71 billion in February, primarily due to a surge in gold imports. Gold imports soared to USD 6.15 billion in February 2024, marking a 134 per cent increase compared to the same period the previous year. Overall imports in February 2024 reached USD 60.11 billion, a 12.2 per cent year-on-year increase.
India’s overall imports (goods and services combined) from April 2023 to February 2024 are estimated at USD 782.05 billion, indicating a contraction of 4.64 per cent compared to the corresponding period in the previous financial year.
