Empowering Global Connections: Export Growth and Resilience
The fiscal year 2023-24 culminates on a high note, with March 2024 witnessing the highest monthly merchandise exports of the current fiscal year, amounting to USD 41.68 billion
In the face of persistent global challenges, there’s a silver lining in the world of trade as India’s overall exports, including both merchandise and services, are set to surpass last year’s highest record. According to estimates, in the fiscal year 2023-24, exports are expected to reach a commendable USD 776.68 billion compared to USD 776.40 billion in the preceding fiscal year.
Marching Towards Success
The fiscal year 2023-24 culminates on a high note, with March 2024 witnessing the highest monthly merchandise exports of the current fiscal year, amounting to USD 41.68 billion. This milestone reflects the resilience and adaptability of the export sector amidst various global uncertainties.
Diversification Leads the Way: Non-Petroleum & Non-Gems & Jewellery Exports
One notable trend is the diversification of exports, particularly evident in the non-petroleum and non-gems & jewellery sector. Exports in this category have seen a promising increase of 1.45%, climbing from USD 315.64 billion in FY 2022-23 to USD 320.21 billion in FY 2023-24. This diversification underscores the expanding horizons and opportunities in the global market.
Driving Forces Behind Export Growth
Several key sectors have been instrumental in driving the growth of merchandise exports in FY 2023-24. Among these, electronic goods, drugs & pharmaceuticals, engineering goods, iron ore, cotton yarn/fabs./made-ups, handloom products, ceramic products, and glassware stand out prominently.
Electronic Goods: A remarkable surge of 23.64% is observed in electronic goods exports, soaring from USD 23.55 billion in FY 2022-23 to USD 29.12 billion in FY 2023-24. This significant increase highlights the growing demand and competitiveness of electronic products in the global market.
Drugs & Pharmaceuticals: The pharmaceutical sector continues its upward trajectory with a notable growth rate of 9.67%, reaching USD 27.85 billion in exports during FY 2023-24. This steady expansion underscores the sector’s resilience and importance in meeting global healthcare needs.
Engineering Goods: With a modest yet commendable growth rate of 2.13%, engineering goods exports have reached USD 109.32 billion in FY 2023-24. This sector’s consistent performance reinforces its pivotal role in driving economic growth and innovation.
Positive Growth in Agricultural Commodities
In addition to the industrial sectors, agricultural commodities have also made significant contributions to export growth. Various agricultural products, including tobacco, fruits and vegetables, meat, dairy & poultry products, spices, cereal preparations & miscellaneous processed items, oil seeds, and oil meals, have exhibited positive growth rates in FY 2023-24. These figures underscore the resilience and potential of the agricultural sector in contributing to export diversification and economic development.
Balancing the Books: Trade Deficit Improvement
One of the most notable achievements in FY 2023-24 is the significant improvement in the overall trade deficit, which is estimated to have reduced by an impressive 35.77% from USD 121.62 billion in FY 2022-23 to USD 78.12 billion in FY 2023-24. Particularly, the merchandise trade deficit has seen a notable improvement of 9.33%, amounting to USD 240.17 billion in the current fiscal year compared to USD 264.90 billion in the previous fiscal year. This improvement reflects proactive measures and strategic initiatives aimed at enhancing trade balance and economic sustainability.
In conclusion, despite facing various global challenges, the export sector has demonstrated resilience, adaptability, and promising growth prospects in FY 2023-24. With diversified exports, robust performance across key sectors, and improvements in trade balance, the outlook remains optimistic for the continued expansion and development of international trade.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.