India’s trade performance during April-August 2024 revealed a modest growth in exports, while imports surged significantly, widening the trade deficit. The cumulative overall exports (merchandise and services combined) during April-August 2024 stood at USD 374.33 billion, a 5.35 per cent increase compared to USD 350.11 billion in the same period of 2023. The cumulative value of merchandise exports alone was USD 178.68 billion, registering a slight growth of 1.14 per cent from USD 176.67 billion in April-August 2023.
Non-petroleum and non-gems & jewellery exports saw a 2.35 per cent increase, rising from USD 26.14 billion in August 2023 to USD 26.76 billion in August 2024. Key sectors driving this growth included engineering goods, which grew by 4.36 per cent, from USD 9.05 billion to USD 9.44 billion. Organic and inorganic chemicals exports rose by 8.32 per cent, reaching USD 2.37 billion compared to USD 2.19 billion the previous year. Electronic goods also experienced significant growth, up 7.85 per cent, from USD 2.16 billion to USD 2.33 billion year-on-year. Ready-made garments (RMG) of all textiles saw the highest growth, with an 11.88 per cent increase from USD 1.13 billion to USD 1.27 billion. The pharmaceuticals sector continued its upward trend, registering a 4.67 per cent growth, reaching USD 2.35 billion in August 2024.
Trade Deficit Widens
Despite the growth in exports, India’s trade deficit widened as imports surged. Merchandise imports during August 2024 amounted to USD 64.36 billion, up from USD 62.30 billion in August 2023. The total trade deficit for April-August 2024 reached USD 46.46 billion, compared to USD 37.94 billion in the same period of 2023. Non-petroleum, non-gems & jewellery imports also saw a significant rise, increasing from USD 38.88 billion in August 2023 to USD 40.65 billion in August 2024.
Services Trade
The services sector showed robust performance, with an estimated export value of USD 30.69 billion in August 2024, compared to USD 28.71 billion in August 2023. Services imports also grew, reaching USD 15.70 billion from USD 15.09 billion in the previous year. The cumulative services exports for April-August 2024 were USD 150.18 billion, up from USD 135.50 billion in the same period of 2023, showcasing a growth rate of 10.84 per cent.
Global Trade Partners
India's top export destinations in August 2024 showed robust growth across several key markets. The Netherlands saw a 28.92 per cent increase, while exports to Kenya surged by an impressive 105.72 per cent. Russia recorded a 44.61 per cent growth, followed by Brazil at 27.05 per cent, and the UK with a 14.57 per cent rise. On the import side, significant growth was noted in imports from the UAE, which grew by 72.7 per cent, and Switzerland, which saw an 80.45 per cent increase. Imports from China rose by 15.55 per cent, while the UK experienced a remarkable 124.55 per cent growth, and Oman led with a staggering 274.95 per cent rise.
PHDCCI lauded India's export resilience, noting a 5.3 per cent year-on-year growth during April-August 2024 despite global challenges. Total exports of merchandise and services reached USD 374.3 billion, up from USD 350.1 billion in the same period last year. PHDCCI President Sanjeev Agrawal highlighted rising exports of electronic goods, tea, coffee, spices, and cereal preparations as key drivers. He expressed optimism for continued strong export performance as India's supply chains strengthen further in FY 2024-25.
While India’s exports continue to rise, the widening trade deficit driven by increasing imports, particularly in non-petroleum sectors, signals the need for strategic interventions. With the festive season around the corner, the demand for various goods, particularly in textiles and electronics, is expected to boost trade further.
As India navigates a competitive global trade environment, a focus on expanding key export sectors and addressing the challenges of rising imports will be critical to achieving a balanced trade outlook in the coming months.
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