(MENAFN- KNN India)
New Delhi, Oct 19 (KNN)
India's merchandise exports grew marginally by 1 per cent in the first half (H1) of FY25, rising to USD 213.22 billion from USD 211.08 billion in the same period last year, despite a challenging global environment.
Traditional export drivers, such as petroleum products and gems and jewellery, saw significant declines due to slow growth in developed markets. However, robust performances in pharmaceuticals, electronics, and engineering goods provided some relief.
Engineering goods, which account for around 25 per cent of India's export basket, grew 5.27 per cent annually to USD 56.24 billion, according to the Ministry of Commerce & Industry.
Electronics exports surged by 19.74 per cent to USD 15.64 billion, and shipments of drugs and pharmaceuticals expanded by 7.99 per cent to USD 14.43 billion. Additionally, organic and inorganic chemical exports grew by 4.57 per cent to USD 14.11 billion.
"India has made a mark with its engineering products and chemical exports," said Commerce Secretary Sunil Barthwal. "Though merchandise exports have faced global challenges, India is outperforming the global average."
Traditionally strong export sectors have struggled amid global slowdowns. Exports of petroleum products dropped by 12.48 per cent to USD 36.54 billion, while gems and jewellery exports fell 10.89 per cent to USD 13.92 billion.
A slowdown in developed economies, along with higher crude prices and disruptions in global supply chains, compounded these challenges.
India's trade dynamics have been shaped by several international factors, including the Russia-Ukraine war, which has kept energy prices elevated, and tensions between the US and China, which have disrupted supply chains.
Additional pressures arose from Houthi attacks on vessels in the Red Sea, causing higher freight rates, and the EU's new carbon tax and forest regulations.
While the WTO projects a gradual recovery in global trade, predicting 2.6 per cent volume growth in 2024 and 3.3 per cent in 2025, geopolitical risks remain.
India's top export markets during H1 included the US, the UAE, the Netherlands, the UK, and China. Despite modest export growth, the country's trade deficit widened by over 24 per cent to USD 54.83 billion during April-September, compared to USD 44.18 billion in the same period last year. However, September saw the deficit narrow to a five-month low.
“The external sector needs close monitoring, with real-time interventions when necessary,” said Manoranjan Sharma, chief economist at Infomerics Ratings.
India's evolving trade scenario underscores the importance of diversification and resilience to navigate global uncertainties. The focus on engineering, electronics, and pharmaceuticals could drive export growth as global trade recovers.
(KNN Bureau)
MENAFN19102024000155011030ID1108797134
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.