Robust Indian exports imply a fruitful 2024

India's rank in world merchandise exporters improved from 19th to 17th during the same period. Further, the export to the country’s top 10 destinations witnessed a 13 per cent year-on-year increase in 2023-24

India’s merchandise exports this January registered 3.12 % growth at $ 36.92 billion over the $ 35.80 billion in the corresponding period in 2023. The main drivers of merchandise export growth in January 2024 include petroleum products, engineering goods, iron ore, electronic goods, and drugs and pharmaceuticals, among others.

Exports of petroleum products registered a growth of 6.57% at $ 8.21 billion from $ 7.70 billion in January 2023 while engineering goods exports recorded an increase of 4.20% at $8.77 billion over $ 8.41 billion last year; electronic goods exports swelled by 9.31% at $ 2.30 billion from $ 2.11 billion; exports of drugs and pharmaceutical products touched $ 2.13 billion, which was an increase of 6.84% over $ two billion in January 2023

Exports of agricultural products, including tobacco, (47.32%), meat, dairy and poultry products (26.12%), spices (20.50%), cereal preparations and miscellaneous processed items (18.69%), oil meals (14.66%), 0il seeds (11.34%) and fruits and vegetables (10.61%) continue to grow in January 2024.

The overall trade deficit improved by 37.11% from $ 111.99 billion in April-Jan 2022-23 to $ 70.43 billion in April-Jan 2023-24; merchandise trade deficit improved by 9.66% from $ 229.37 billion in April-Jan 2022-23 to $ 207.20 billion in April-Jan 2023-24

India's exports have increased to 115 countries out of the total 238 destinations during 2023-24 despite the global economic uncertainties, according to the Union Commerce ministry's data.

These 115 export destinations, which account for 46.5 per cent of India's export basket, include the US, UAE, Netherland, China, UK, Saudi Arabia, Singapore, Bangladesh, Germany and Italy.

The country's merchandise exports dipped by around three per cent to $ 437.1 billion last fiscal. However, services exports rose to $341.1 billion in 2023-24 as against $ 325.3 billion in 2022-23.

Overall exports reached $ 778.2 billion in 2023-24 as compared to $ 776.4 billion in 2022-23, registering a marginal growth of 0.23 per cent.

The share of India's merchandise exports increased marginally from 1.70 per cent in 2014 to 1.82 per cent in 2023. India's rank in world merchandise exporters improved from 19th to 17th during the same period.

Further, the export to the country’s top 10 destinations witnessed a 13 per cent year-on-year increase in 2023-24.

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The UAE has emerged as the primary destination, with a substantial 12.71 per cent growth in export value at USD 35.6 billion.

Similarly, exports to Singapore surged by 20.19 per cent to USD 14.4 billion, to the UK (up 13.30 per cent to USD 13 billion), and to China (up 8.70 per cent to USD 16.7 billion) also recorded healthy growth indicating a sustained demand for Indian products. India's export to its top 10 destinations witnessed a 13 per cent year-on-year increase in 2023-24.

A media data showed that the exponential growth rates observed in countries like Russia (35.41 per cent), Romania (138.84 per cent), and Albania (234.97 per cent) underscore the exploration of new markets.

"Strengthening trade relations with these nations could unlock untapped opportunities and bolster India's overall export competitiveness," an official said.

The top five export destinations driving export growth in CIS region during 2023-24 were Russia, Uzbekistan, Ukraine, Armenia and Tajikistan. Similarly, the top five destinations driving India's export growth in Oceania region in the last fiscal include Australia, Timor Leste, Samoa, Vanuatu and Solomon Island.

European countries where Indian exporters recorded a healthy growth in their shipments during 2023-24 included the UK, Romania, Albania, Netherland and Greece.

On the commodities front, around 17 items registered an increase in exports in 2023-24 over the last financial year. These sectors constitute 48.4 per cent of India's export basket. The top 10 source countries, which constitute 59.3 per cent of India's import basket, include China, USA, Saudi Arabia, Indonesia, Russia, and Switzerland.

According to the data, of the 229 source nations, India's imports have declined from 124 countries in 2023-24. Meanwhile, India Exim Bank projected that India's merchandise exports would swell by 12.3 per cent to $ 116.7 billion during April-June this fiscal.

"The positive growth in India's exports could be due to the robuts GDP growth fundamentals and outlook, sustained momentum in manufacturing and services sector, backed by expected global easing of monetary tightening spurring global demand, and to some extent due to base effect," the report said.