Exports may cross $800 bn this fiscal

During Q1 of FY25, the exports of goods and services stood at $200 bn - Sunil Barthwal, Commerce Secretary

Foreign Trade:

• Trade deficit at $20.98 bn in June
• Engg, electronics, pharma, coffee and chemicals top exports list
• Mobile phones lead electronic goods exports
• Electronic mfg set to double to $250 bn in next 5 yrs

New Delhi: India’s merchandise exports in June increased 2.56 per cent to $35.2 billion despite global challenges, even as the trade deficit widened to $20.98 billion during the month. According to the government data released on Monday, imports rose about 5 per cent to $56.18 billion in June due to the increase in inbound shipments of crude oil, pulses, and electronic goods. The trade deficit, or the gap between imports and exports, during June 2023 was $19.19 billion.

India’s merchandise exports grew 9.1 per cent to $38.13 billion in May, even as the trade deficit widened to a seven-month high of $23.78 billion. Cumulatively, the merchandise exports in April-June this fiscal climbed 5.84 per cent to $109.96 billion, and imports grew 7.6 per cent to $172.23 billion. The trade deficit during April-June 2024 widened to $62.26 billion compared to $56.16 billion in the same period last year.

Briefing media on the data, Commerce Secretary Sunil Barthwal said going by the current trend, the country’s total exports of goods and services may cross $800 billion this fiscal. During the first quarter of 2024-25, the exports of goods and services stood at about $200 billion, he added. “If the current trend continues, we will certainly cross $800 billion this fiscal,” Barthwal said, adding the major drivers of export growth are engineering, electronics, pharmaceuticals, coffee and chemicals.

He added that the ministry is focusing on six major sectors (engineering, textiles and apparel, electronics, pharmaceuticals, chemicals and plastics, and agriculture) and 20 countries to boost exports. Oil imports rose by 19.62 per cent to $15 billion in June. It was up by 23 per cent at $51.5 billion during April-June 2024-25. However, gold imports dipped by 38.66 per cent to $3 billion in June this year and 1.91 per cent during the first quarter of this fiscal at $9.51 billion. According to the data, the estimated value of services exported in June is $30.27 billion compared to $27.79 billion in June 2023. Imports of services are estimated to have increased to $17.29 billion during the month from $15.61 billion in June 2023. Further, the data showed that India’s shipment to the major export destinations - the US, UAE, Malaysia, Bangladesh, Tanzania, the Netherlands, and Singapore recorded healthy growth in June.