By Dr. Vijay Kalantri, Chairman, MVIRDC WTC Mumbai
India’s overall exports shows resilience amidst global headwinds
Amidst the global uncertainties, India’s merchandise exports have surpassed $400 billion for the third consecutive year, according to the latest data released by the Ministry of Commerce. India concluded FY 2023-24 with its highest monthly merchandise export figure of $41.68 billion for March 2024 for the current financial year. For FY 2023-24, India’s merchandise exports totaled $437 billion, reflecting a 3% year-on-year decline from FY 2022-23.
Key drivers of recovery
India’s merchandise exports experienced a significant recovery in the second half of FY 2023-24, with a year-on-year growth rate of 3% during October-December, following a 9% decline in the first half from April to September. This turnaround was largely driven by a surge in exports of drugs and pharmaceuticals, gems and jewellery, iron and steel, and textile-related commodities as per data from the Directorate General of Commercial Intelligence and Statistics (DGCIS).
Trade Balance
India’s overall exports (goods and services) are estimated to reach $776.68 billion, representing a marginal 0.04% increase from the previous FY. While India’s goods exports contracted in FY 2023-24, its service exports demonstrated a year-on-year growth of 4.4%. With robust and resilient service exports and a declining trend in overall imports, India’s trade balance improved by 36% from a deficit of $121.6 billion in FY 2022-23 to a deficit of $78.1 billion in FY 2023-24. With expected remittances of $100 billion, India’s Current Account Deficit (CAD) may not exceed the 1% of GDP mark for FY 2023-24.
