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NEW DELHI: India reported strong 12% annualized growth in merchandise exports to $41.4 billion in the month of February despite global headwinds, reducing contraction in the first 11 months of 2023-24 by 3 .6% to $395 billion, a senior official said.
Services exports in February were estimated at $32.15 billion, a year-on-year growth of 17.3% from the February 2023 figure of $27.4 billion. Overall, services exports rose 7% to $314.82 billion between April 2023 and February 2024, up from $294.89 billion in the corresponding period of FY23, according to data released by the Ministry of Commerce on Friday. . The February services data is an extrapolation of the previous month’s figures because the Reserve Bank of India (RBI) releases figures for the services sector with a delay.
Releasing monthly trade data on Friday, Commerce Secretary Sunil Barthwal said February’s numbers indicate we have “surpassed” last year’s numbers, “which gives me hope that by the end of March, when As we close this financial year, our overall exports (goods and services combined) will surpass FY23 figures.
In 2022-23, India’s merchandise exports crossed $451 billion, while total exports (goods and services together) hit a record $770 billion, a high base as India’s total exports India (both goods and services) in 2021-22 also reached a record. 676 billion dollars. In 11 months of 2023-24, India’s total exports (goods and services combined) are estimated at $709.81 billion, a growth of 0.83% from $704 billion in April-February 2022. 2. 3.
According to Barthwal, the achievements of Indian exporters are notable as they withstood global headwinds such as the Russia-Ukraine war, recessions in many markets and logistical disruptions due to disruptions in the Red Sea to achieve growth. significant in February.
“If you look at the 11 months of the fiscal year, this is the highest export growth we have achieved, both in merchandise and in general. This is very encouraging,” he said, adding that India’s overall exports this financial year are likely to be higher than last year’s record exports.
The main drivers of exports during the month were engineering goods, electronic products, chemicals, petroleum products, medicines and pharmaceuticals. Exports of engineering goods in February saw year-on-year growth of 15.9%, while electronic products saw growth of around 55%. The data showed that in electronics exports, particularly smartphones, India and Korea have dominated the US market, with India having a larger share. There has been a decline in the share from China, Vietnam and Hong Kong, said another official who did not want to be identified.
India posted a trade deficit of $18.71 billion in February, down from $16.57 billion in the same period a year earlier, mainly due to an increase in gold imports. The country imported gold worth $6.15 billion in February 2024, an increase of about 134% from $2.63 billion in the same period a year earlier. In the 11-month period of FY24 (April-February), gold worth more than $44 billion was imported, a year-on-year increase of 39%. Overall, the country imported goods worth $60.11 billion in February 2024, a year-on-year increase of 12.2% compared to $53.58 billion in February 2023.
India’s total imports (goods and services combined) between April 2023 and February 2024 are estimated at $782.05 billion, showing a contraction of 4.64% compared to $820.14 billion in the corresponding period of the last financial year.
Commenting on the February trade data, Federation of Indian Export Organizations (FIEO) president Ashwani Kumar said the last time the figures showed such higher growth was in March 2023, when it was 41.96 billion dollars. Imports increased more than 12% to $60.11 billion, showing the highest growth in four months. “Such an impressive increase in overall export growth despite the Red Sea crisis, the developed world’s tight monetary stance and challenging commodity price declines not only reflects the dedication and commitment of the sector, but also the resilience of the export community, which has “I have been continually defying such odds since the Russia-Ukraine war,” he said.
Recent tensions in West Asia, especially the threat to shipments passing through the Red Sea, have further aggravated the problems of the export community, as freight rates have risen unimaginably, burdened by various surcharges, he said. “Much will depend on new contracts signed with buyers during the new fiscal year, as exporters have been absorbing the burden of increased freight costs under the old agreement,” he added.
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