(MENAFN- KNN India)
New Delhi, Jul 16 (KNN) India's goods exports grew by 2.55 per cent year-on-year in June, reaching USD 35.2 billion, according to data released by the Commerce and industry Ministry.
This growth comes as key export markets like the United States and European Union see a slight easing of inflation and continued demand recovery.
The trade deficit widened to USD 20.98 billion, partly due to a 20 per cent increase in the petroleum import bill. Exporters are facing logistical challenges, including container shortages and limited shipping space.
These issues have been exacerbated by Chinese exporters rushing to beat new US tariffs, putting additional pressure on available resources.
Despite these challenges, exports increased to four out of five top destinations, with notable growth in shipments to the UAE, Netherlands, and UK.
China remains India's top import source, followed by Russia, UAE, and the US. Interestingly, imports from Vietnam and Taiwan saw significant surges, indicating shifting trade dynamics in the region.
Commerce Secretary Sunil Barthwal expressed optimism about India's export outlook, projecting total exports to exceed USD 800 billion for the current financial year. This positive sentiment is supported by growth in several key sectors.
Spice exports grew by 11.50 per cent, while drugs & pharmaceuticals saw an 11.58 per cent increase. Engineering goods and electronic goods exports also showed strong performance, growing by 11.93 per cent and 18.67 per cent respectively.
However, challenges persist in the export landscape. Industry experts point to high freight rates, protectionist measures from export partners, and muted demand in some markets as ongoing concerns.
To address these issues, there are calls for measures to improve liquidity, tackle logistics challenges, and expedite the conclusion of free trade agreements with countries like the UK, Peru, and Oman.
This mixed picture of growth and challenges highlights the complex nature of global trade in the current economic climate. While India's export sector shows resilience and areas of strong performance, it must navigate a range of obstacles to maintain and enhance its position in the international market.
(KNN Bureau)
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