India’s export sector continued its impressive run in October, with core group exports surging by a robust 27.7% year-on-year. This growth was particularly pronounced in key sectors, including engineering goods, electronic goods, chemicals, textiles, marine products, and rice, according to a recent CRISIL report.
Textile Sector Gains Momentum
The textile sector, a significant contributor to India’s export basket, witnessed a notable uptick in October. Readymade garment exports surged by 35.1%, building upon the 17.3% growth recorded in the previous month. Similarly, cotton yarn, fabrics, and handloom product exports grew by 7%, accelerating from the 3.5% growth in September.
Furthermore, the export of handicrafts, a labour-intensive sector, saw a significant 32.7% year-on-year increase, albeit lower than the 48.1% growth in the preceding month. Leather and leather product exports also maintained positive momentum, growing by 12.3% year-on-year.
Broad-Based Export Growth
Beyond the textile sector, several other key export categories contributed to the overall surge. Engineering goods exports soared by 39.4%, while electronic goods exports jumped by 45.7%. The pharmaceutical sector also performed well, with exports growing by 8.2%.
Agricultural exports remained strong, with rice exports skyrocketing by 85.8% due to the government’s decision to lift export restrictions on both basmati and non-basmati rice. Other agricultural products, such as cashews, fruits and vegetables, tea, and spices, also recorded healthy growth rates.
Import Trends
While exports were robust, India’s import growth moderated. Imports of electrical and non-electrical goods grew by 8.7% year-on-year, down from 17.4% in the previous month. Notably, imports of gold and precious stones declined significantly. However, vegetable oil imports surged by 50.9% year-on-year.
Strong Services Sector
India’s services sector also continued its positive trajectory, with exports growing by 14.6% year-on-year in September. This robust growth, coupled with a slower pace of import growth, led to a significant increase in the services trade surplus to $16.1 billion.
Outlook
The strong performance of India’s export sector in October bodes well for the country’s economic outlook. Continued momentum in key sectors like textiles, engineering goods, and pharmaceuticals, combined with supportive government policies, could further bolster India’s export growth in the coming months.
