India’s exports grew at a modest pace in June 2024, according to government data released today. However, the increase was not enough to offset a rise in imports, leading to a wider trade deficit.
Overall exports, including merchandise and services, grew 5.40% in June compared to the same month last year. This follows a stronger performance in the April-June quarter, with exports rising 8.60% year-on-year.
Merchandise exports for June 2024 showed a positive growth of 2.55%, reaching USD 35.20 billion compared to USD 34.32 billion in June 2023. For the April to June 2024 period, merchandise exports totaled USD 109.96 billion, up from USD 103.89 billion in the previous year, reflecting a growth of 5.84%.
Non-petroleum and non-gems & jewellery exports also saw a substantial increase of 8.48%, from USD 25.29 billion in June 2023 to USD 27.43 billion in June 2024. Key sectors driving this growth include Engineering Goods, Electronic Goods, Drugs & Pharmaceuticals, Coffee, and Organic & Inorganic Chemicals. Engineering Goods exports rose by 10.27% to USD 9.39 billion, Electronic Goods exports grew by 16.91% to USD 2.82 billion, and Coffee exports surged by an impressive 70.02% to USD 0.20 billion.
Total imports for June 2024 were estimated at USD 73.47 billion, marking a 6.29% increase compared to June 2023. Merchandise imports for June 2024 stood at USD 56.18 billion, up from USD 53.51 billion in the previous year. The cumulative value of merchandise imports for the April to June 2024 period was USD 172.23 billion, compared to USD 160.05 billion in the same period last year.
Despite a widening merchandise trade deficit, which increased to USD 62.26 billion for April to June 2024 from USD 56.16 billion in the previous year, the overall growth in exports reflects the strength and resilience of India’s export sector.
Service exports also performed well, with the estimated value for June 2024 at USD 30.27 billion, up from USD 27.79 billion in June 2023. For the April to June 2024 period, the estimated value of service exports was USD 90.37 billion, an increase from USD 80.57 billion in the same period last year.
The main export destinations showing positive growth included the USA, UAE, Malaysia, Bangladesh, and Tanzania. On the import side, the primary sources with significant growth were the UAE, China, Russia, Indonesia, and the USA.
Overall, the substantial growth in both merchandise and service exports indicates a strong performance by India’s export sector, driven by key industries and favorable trade relations with major global markets.
