(MENAFN- KNN India) New Delhi, May 10 (KNN) The Export-Import Bank of India (Exim Bank) has painted an optimistic picture for India's merchandise exports in the ongoing first financial quarter of 2024.
According to the bank's projections, India's total merchandise exports are expected to reach USD 116.7 billion, marking a substantial 12.3 per cent year-on-year growth.
This robust performance is attributed to the country's strong economic fundamentals and sustained momentum in the manufacturing and services sectors.
The Exim Bank further forecasts that non-oil exports will also experience a healthy growth of 10.7 per cent, reaching USD 93.9 billion during the same period.
The positive outlook is bolstered by the anticipated global easing of monetary tightening, which is expected to enhance global demand and provide further support to India's export growth.
"The positive outlook for India's exports is supported by several factors. The key drivers for it are strong GDP growth fundamentals and outlook, along with sustained momentum in the manufacturing and services sectors," stated the Exim Bank report.
The bank's projections align with the World Trade Organisation's (WTO) positive outlook for global trade. The WTO estimates that global goods and merchandise trade will gradually recover in 2024 from the downturn experienced in 2023 due to high energy prices and inflation.
According to the WTO's Global Trade Outlook and Statistics report, the volume of global merchandise trade is projected to increase by 2.6 per cent in 2024 and by 3.3 per cent in 2025, benefitting from easing economic pressures and rising incomes.
Exim Bank's forecast for India's export growth comes on the heels of recent data indicating a narrowing merchandise trade deficit.
In March, India's trade deficit narrowed to USD 15.6 billion, marking the lowest deficit in 11 months, further bolstering the positive outlook for the country's export performance
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