📷 Image Credits: Moneycontrol
India’s merchandise trade deficit narrowed to $20.98 billion in June as against $23.78 billion a month back, thanks to a larger fall in imports, the Commerce Ministry said on July 15.
While exports fell 7.7 percent from May to $35.20 billion in June, imports declined at a faster clip of 9.25 percent to $56.18 billion.
On a year-on-year basis, goods exports rose 2.6 percent in June, while imports were up by nearly 5 percent. As a result, the goods trade gap was wider last month versus in June 2023 at $19.19 billion.
Commerce Secretary Sunil Barthwal said on July 15 that the government is focusing on sectors such as engineering goods, electronics, pharmaceuticals, and textiles in a bid to drastically improve India’s export market share. “As predicted, if inflation goes down globally and growth sustains across the world then trade should hold up as well,” Barthwal added.
Major drivers of merchandise exports growth in June 2024 included engineering goods, electronic goods, drugs and pharmaceuticals, coffee, and organic and inorganic chemicals.
Outbound shipments of engineering goods increased by 10.3 percent on-year to $9.4 billion in June 2024, and electronic goods exports rose by 16.9 percent to $2.82 billion.
Commenting on the data, EEPC India Chairman Arun Kumar Garodia said, “The positive growth in exports for the second consecutive month is quite encouraging and hopefully the performance will continue despite several challenges engineering exports are facing. Among the major headwinds the industry is facing are high freight rates, protectionist measures from major export partners, and muted demand in some key markets.”
India’s total exports (merchandise and services combined) for June 2024 are estimated at $65.47 billion, registering a growth of 5.40 percent versus June 2023, while overall imports were at $73.47 billion, up 6.29 percent on-year.
Out of this, the estimated value of services export for June 2024 stood at $30.27 billion as compared to $27.79 billion in June 2023, while services imports for last month were $17.29 billion versus $15.61 billion on-year.
During the first quarter of FY24, India’s total exports during April-June 2024 are estimated at $200.33 billion, registering a growth of 8.6 percent, while overall imports are expected to be $222.89 billion, up 8.5 percent.
