India's exports marginally up; trade deficit narrows

Snapping th$e two-month slide, the country's merchandise exports rose marginally by 0.5 per cent to $34.58 billion in September while the trade deficit narrowed to a five-month low at $20.78 billion.

According to official data released on Wednesday, imports increased by 1.6 per cent to $55.36 billion in September compared to $54.49 billion in the year-ago period.

The trade deficit, or the gap between imports and exports, was $20.8 billion during the same month last year. It soared to a 10-month high of $29.65 billion in August.

The outbound shipments had declined by 9.3 per cent in August and 1.2 per cent in July compared to the year-ago months.

The last low trade deficit was $19.82 billion in April.

Exports during April-September this fiscal increased by 1 per cent to $213.22 billion, and imports grew by 6.16 per cent to $350.66 billion.

The trade deficit during the first half of the fiscal year was $137.44 billion.

Commerce secretary Sunil Barthwal told reporters here that exports both in September and during the first six months of this fiscal have recorded positive growth despite global uncertainties.

The important drivers of exports included engineering, chemicals, plastics, pharma, ready-made garments and electronics.

"We have done well despite global difficulties," Barthwal said.

Gold imports edged up to $4.39 billion in September against $4.11 billion in the same month last year.

During the first half of the fiscal, it rose by 6.9 per cent to $27 billion.

On the other hand, oil imports in September dipped by 10.44 per cent to $12.53 billion.

During April-September 2024, it, however, rose by 5.91 per cent to $88.91 billion.

Silver imports in September jumped to $325.66 million from $106.64 million in the same month last year.

In the first half of the fiscal, it has quadrupled to $2.29 billion from $480.65 million in April-September 2023.

During the month under review, cotton raw and waste too has soared to $134.20 million from $40 million in September 2023.

On escalation in the West Asia conflict and its impact on the shipping industry, the secretary said some issues which are temporary in nature were addressed recently in a meeting.

"But we are also looking at the long-term solutions...We are looking at how we can improve India's share in shipping transport across the world. So both short-term as well as long-term measures are being taken," he said.

On the export outlook, he said that the world is changing "very very" fast. so "we will be waiting and watching".

According to the data, the estimated value of service exports during April-September 2024 is $180 billion compared to $163.92 billion in April-September 2023.

The imports during this period are $97.39 billion against $88.86 billion in April-September 2023.

On the export front, exports of petroleum products dipped by 26.67 per cent to $4.73 billion, while it declined by 12.48 per cent to $36.53 billion during the first six months of this fiscal.

The other key sectors which were in the negative zone included gems and jewellery, marine products and iron ore.

However, electronic goods shipments rose by 7.89 per cent to $2 billion in September and 19.74 per cent to $15.64 billion during the first half of this fiscal.

When asked about apprehension of dumping of electric vehicles from China in India as the US and Europe have raised their duties, Barthwal said that India has high tariff protection and the market is also being served by top-notch Indian auto players.

Whether the EU's carbon tax would impact trade pact talks, he said that India's free trade agreement with the European Union is "much" more broad-based.

In November, the secretary is expected to meet the Directorate General for Trade of the EU.

On the data, Mithileshwar Thakur, Secretary General AEPC (Apparel Export Promotion Council), said that the exports are now on a high growth trajectory.

"We have started harnessing the untapped potential and have been logging double-digit growth in RMG (ready-made garments) exports in the last few months in spite of geo-political challenges," he said.