India’s top 10 export destinations have shown mixed performance during the period of April-October in the financial year 2023-24, according to recent data released by the commerce ministry. Among these destinations, the Netherlands, the UK, and Australia have emerged as key drivers of India’s shipments, while exports to most other countries remained in negative territory.
China, one of India’s major trading partners, saw only a modest 0.8% growth in shipments during the same period. However, there is some positive news as India’s overall exports recorded growth in August (3.8%) and October (6.2%), indicating signs of a turnaround, according to the commerce department. Despite these gains, exports contracted by 7% in the April-October period.
Experts attribute the growth in October to a favorable base effect from the previous year, as shipments fell sequentially from September to October. The World Trade Organization (WTO) recently downgraded its growth projection for the world merchandise trade volume, but slightly revised upwards its forecast for goods trade in 2024.
Looking at specific export figures for the April-September period, India’s exports to Australia were mainly driven by petroleum products ($2.8 billion) and medicines for retail sale ($188 million). In the case of the UK, petroleum products ($743 million), smartphones ($494 million), medicines for retail sale ($261 million), and turbo jets ($211 million) were the main contributing factors. The Netherlands, being a crucial trans-shipment hub for the European Union, imported petroleum products ($5.6 billion) as well as smartphones ($484 million), medicines for retail sale ($161.5 million), and aluminum ($159 million) from India.
While India faced a contraction in exports to several destinations during April, the situation improved in October. Double-digit export growth was observed for the USA, the UAE, the Netherlands, China, the UK, Saudi Arabia, Bangladesh, and Australia. On the other hand, only imports from Russia and the Netherlands saw positive growth during the April-October period, primarily due to India’s reliance on crude oil and gold from these countries.
Overall, India’s export performance has seen some positive signals, but challenges remain as the global trade landscape continues to face uncertainties. The government’s focus on enhancing trade ties with key partners and diversifying export markets may serve as a crucial strategy for future growth.
