In June 2024, India witnessed a 2.55% growth in merchandise exports, reaching US$ 35.20 billion compared to US$ 34.32 billion in June 2023. This growth reflects the country's robust trade performance and strategic export initiatives. The cumulative value of exports during April-June 2024 was US$ 109.96 billion, marking a 5.84% increase from the same period in 2023.

Key Drivers of Export Growth:

The growth in exports can be attributed to significant increases in several sectors. Non-petroleum and non-gems and jewellery exports rose by 8.48% to US$ 27.43 billion in June 2024. Notable sectors driving this growth included:

Engineering Goods

Electronic Goods

Drugs and Pharmaceuticals

Coffee

Organic and Inorganic Chemicals

Particularly impressive was the surge in Coffee exports, which grew by 70.02%. Electronic Goods and Engineering Goods also saw significant increases, with exports rising by 16.91% and 10.27%, respectively.

Also Read : India's WPI Records 3.36% Inflation Rate in June 2024, Driven by Higher Prices in Key Sectors

Comprehensive Trade Overview:

Total exports (merchandise and services combined) for June 2024 are estimated at US$ 65.47 billion, reflecting a 5.40% growth compared to June 2023. Total imports for the same month are estimated at US$ 73.47 billion, marking a 6.29% increase.

For the period of April-June 2024, total exports are estimated at US$ 200.33 billion, an 8.60% increase from the previous year. Total imports during this period are estimated at US$ 222.89 billion, showing an 8.47% growth. Consequently, the merchandise trade deficit for April-June 2024 was US$ 62.26 billion, compared to US$ 56.16 billion in the same period in 2023.

Services Trade Performance:

In June 2024, services exports were valued at US$ 30.27 billion, up 12.16% from June 2023. Services imports for the same month stood at US$ 17.29 billion. The robust performance in the services sector complements the overall positive trade outlook.

Sectoral Export Highlights:

Top export categories showing significant growth included:

Coffee

Tobacco

Electronic Goods

Meanwhile, imports of Gold, Fertilisers, and Pearls recorded declines, indicating strategic shifts in import patterns.

Key Export Destinations and Import Sources:

Notable export growth destinations for India in June 2024 included:

USA

UAE

Malaysia

Bangladesh

Tanzania

On the other hand, the top import sources showing significant growth were:

UAE

China

Russia

Indonesia

USA

Conclusion:

India’s merchandise exports experienced a notable 2.55% growth in June 2024, reaching US$ 35.20 billion, driven by key sectors such as Engineering Goods, Electronic Goods, and Coffee. The overall trade performance, including significant growth in services exports, underscores the country's resilient and diversified economic landscape. With strategic export growth and careful management of import patterns, India continues to strengthen its position in the global trade arena. The insights into trade dynamics for April-June 2024 provide valuable data for economic analysis and policymaking, highlighting the sectors driving growth and the broader economic outlook.

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