In the financial year (FY) 2023-24, India’s exports skyrocketed to a record high of US$778bn, surpassing the previous fiscal year’s $776.3bn, the national broadcaster Doordarshan reported citing a source in the commerce ministry.
According to reports, the export growth is mainly driven by service exports, which rose to $341.1bn from $325.3bn in FY 2022-23. Merchandise exports, however, experienced a marginal decrease, from $451.1bn to $437.1bn.
According to reports, strategic initiatives of the government, including the Production Linked Incentive (PLI) scheme in different sectors—geared towards increasing global competitiveness, attracting investment, and cutting import dependencies—helped in growing exports in FY 2023-24
In conformity with the official data from the Ministry of Trade and Industry on merchandise exports, February recorded the highest monthly exports in FY-2023-24, amounting to $41.40bn.
This amount marked an 11.86% rise since February 2023. The principal cause of the development was engineering goods, electronic goods, organic and inorganic liquid chemicals, pharmaceuticals and petroleum products.
Besides, non-oil and non-gem and jewellery exports significantly increased to $29.97bn in February 2024 compared to February 2023, when it was $25.57bn.
However, despite these accomplishments, the future is not without its challenges. In particular, the global economic downturns and uneasy geopolitics may influence trade relations.
Considering variables like the central bank interest rate rises due to the inflationary pressure and tensions in areas other than the European Union, global trade patterns have become more complicated than before 2019.
In April 2024, India continued its upward trajectory in exports, totalling $64.56bn, while imports surged to $71.07bn, resulting in a widened trade deficit of $6.51bn compared to the same period last year.
That being said, India’s overall trade deficit for FY 2023-24 up to February 2023 registered a notable reduction, amounting to $72.24bn billion— down from $116.13bn the preceding fiscal year to the other end.
The fall in the merchandise trade deficit is also noteworthy, decreasing below $226.25bn compared to $245.94bn in the previous year, indicating India’s steps to trade balancing.
