New Delhi: India’s merchandise exports declined marginally in March to $41.68 billion, while for the entire 2023-24 it dipped 3.11 per cent to $437.06 billion, as geopolitical issues continued to hamper global shipments.
Imports, too, declined 5.98 per cent to $57.28 billion in March, taking the trade deficit to 15.6 billion during the month.
According to Commerce Ministry data released on Monday, the imports during FY24 stood at 677.24 billion, down 5.41 per cent from $715.97 billion in FY23.
The trade deficit or gap between imports and exports worked to be $240.17 billion.
Replying to a query on escalation of the crisis in the Middle east, Commerce Secretary Sunil Barthwal, who was briefing about the trade data, said the ministry was monitoring the situation and will take “appropriate action”.
The overall exports (merchandise + services) are estimated to surpass last year’s highest record, the Secretary said. It is estimated to reach $776.68 billion in 2023-24 as compared to $776.40 billion in 2022-23.
Barthwal said March witnessed the highest monthly merchandise exports during 2023-24 at $41.68 billion.
Main drivers of merchandise export growth in 2023-24 include electronic goods, drugs and pharmaceuticals, engineering goods, iron ore, cotton yarn/fabs/made-ups, handloom products and ceramic products and glassware.
Electronic goods exports increased 23.64 per cent from $23.55 billion in 2022-23 to $29.12 billion in 2023-24.
Drugs and pharmaceuticals exports increased 9.67 per cent from $25.39 billion in 2022-23 to $27.85 billion during the 2023-24 fiscal year.
Data showed that engineering goods exports increased 2.13 per cent to $109.32 billion in 2023-24.
The ministry also said the overall trade deficit is estimated to significantly improve 35.77 per cent from $121.62 billion in 2022-23 to $78.12 billion in 2023-24.
Moreover, India’s engineering exports rose to $109 billion in FY24 despite a slowdown in some of the major global markets amid geo-political tensions, EEPC said on Monday.
The apex body of engineering goods exporters expects the value of shipments from the sector to rise to $300 billion by 2030 and generate a significant number of jobs and forex earnings in the process.
Notably, the engineering sector is the largest contributor to India’s overall exports, with a share of 24 per cent, and also contributes approximately 40 per cent of the nation’s total manufacturing
exports.
“The engineering goods exports in FY24 surpassed the previous year’s numbers despite a slowdown in some of the key global markets, geo-political tensions, Red Sea crisis and high freight rates,” said EEPC India Chairman Arun Kumar Garodia.
Engineering exports in FY24 rose to $109.31 billion from $107.04 billion in the previous fiscal, thus registering a growth of 2.13 per cent, the Commerce Ministry data released on Monday
showed.
According to EEPC, FY24 closed on a strong note, with engineering exports rising 10.66 per cent year-on-year to $11.28 billion in March against $10.19 billion in the same month last year.
“The monthly, as well as cumulative numbers, clearly show that the Indian engineering sector is quite competitive globally and consistently achieving success in penetrating new markets. The quick response from the government to counter various external challenges,”
Garodia said.