India recorded a landmark achievement in the financial year 2023-24, with exports reaching an unprecedented USD 778 billion, according to sources within the commerce ministry. This marked a notable increase from the USD 776.3 billion recorded in 2022-23. Services exports notably surged from USD 325.3 billion to USD 341.1 billion, while merchandise exports experienced a slight dip from USD 451.1 billion to USD 437.1 billion.
The government’s implementation of initiatives such as the Production Linked Incentive (PLI) scheme across various sectors, particularly in electronics, played a pivotal role in bolstering Indian manufacturers’ competitiveness on a global scale. These efforts aimed to attract investments, boost exports, integrate India into the global supply chain, and reduce reliance on imports, yielding favorable outcomes.
India’s exports witnessed substantial growth in countries like China, Russia, Iraq, UAE, and Singapore, albeit from a relatively low base. Other nations in the top 10 export destinations included the UK, Australia, Saudi Arabia, the Netherlands, and South Africa.
In contrast, overall imports experienced a decline from USD 898.0 billion in 2022-23 to USD 853.8 billion in 2023-24. However, both merchandise and services exports faced a downturn during the financial year.
Significantly, India’s trade deficit saw a notable improvement, shrinking from USD 121.6 billion in 2022-23 to USD 75.6 billion in 2023-24.
In April 2024, the first month of the financial year 2024-25, India’s combined exports, comprising merchandise and services, rose from USD 60.40 billion to USD 64.56 billion. However, imports increased from USD 63.02 billion to USD 71.07 billion during the same period, resulting in a widening trade deficit from USD 2.62 billion to USD 6.51 billion year-on-year.
April saw a rise in exports of electronic goods, organic and inorganic chemicals, petroleum products, and drugs and pharmaceuticals compared to the previous year. Conversely, exports of engineering goods, iron ore, gems and jewelry, marine products, and oil meals declined. On the import side, petroleum crude and products, gold, electronic goods, pulses, and vegetable oil saw an increase, while imports of pearls, precious metals and stones, iron and steel, among others, declined.