During the first eight months of the financial year, India experienced a decrease of 2.8 per cent in overall exports, according to data compiled by the commerce department. However, five out of India’s top 10 export destinations – Saudi Arabia, China, the United Kingdom (UK), Australia, and the Netherlands – bucked this trend with impressive growth. These ten countries collectively represent over 49 percent of India’s merchandise exports.
India’s third-largest market, the Netherlands, saw a significant year-on-year growth of 9.6 per cent, reaching $13.5 billion during the April-November period. The growth in exports was primarily fueled by robust demand for petroleum products and machinery. At $10.3 billion, China, India’s fourth-largest export partner, experienced nearly 4 per cent year-on-year growth. Demand from China had previously contracted but reversed its course in August.
The UK and Australia also remained strong export destinations for India, with a growth rate of 14.6 per cent and 13.9 per cent, respectively. The positive growth was primarily driven by increased demand for petroleum products, apparel, food items, and machinery.
In contrast, exports to the remaining five countries in the top 10, namely the United States, UAE, Singapore, Bangladesh, and Germany, witnessed a decline. This contraction in exports contributed to the overall negative growth in India’s merchandise exports.
On the import front, Russia, Switzerland, China, and South Korea were the only countries among India’s top 10 import partners to experience growth during the first eight months of the financial year. These countries played a crucial role in offsetting the 4.3 per cent year-on-year decline in India’s overall inbound shipments from April to November.
Imports from Russia surged by nearly 55 per cent to $40.5 billion, mainly due to India’s reliance on crude oil. China, India’s biggest import partner, showed a marginal increase of 0.2 per cent at $68 billion. Switzerland witnessed a substantial jump of 28.8 per cent in imports, largely driven by gold imports, reaching $15.5 billion. South Korea also recorded a modest growth of 1.2 per cent, amounting to $14.4 billion.
However, the United States, UAE, Saudi Arabia, Iraq, Indonesia, and Singapore experienced declines ranging from 2.8 per cent to 28.3 per cent in their inbound shipments to India. These countries collectively account for over 59 percent of India’s merchandise imports. The contraction in imports was attributed to subdued local demand and the fall in global commodity prices.
The volatile global demand and uneven economic recovery continue to impact India’s trade performance, highlighting the need for continued efforts to diversify export destinations and reduce import dependency on particular regions.
