NEW DELHI: India’s merchandise exports rose significantly by 17.25 per cent year-on-year in October, reaching $39.2 billion – the highest growth rate in over two years – while the trade deficit expanded to $27.14 billion from September’s $20.78 billion.
However, this deficit is lower than the $30.42 billion recorded in October last year.
The government data, released Thursday, showed a 3.9 per cent increase in imports to $66.34 billion, driven by a 13.34 per cent rise in crude oil imports, which reached $18.2 billion. Exports last achieved high growth at 30.12 per cent in June 2022.
For the April-October period of this fiscal year, exports climbed 3.18 per cent to $252.28 billion, while imports rose by 5.77 per cent to $416.93 billion. The trade deficit for this period stood at $164.65 billion, compared with $149.67 billion in the same period last year.
Services exports
The value of services exports also showed growth, increasing to $215.98 billion from $191.97 billion in April-October last year, while imports rose to $114.57 billion from $102.32 billion.
Commerce Secretary Sunil Barthwal noted that India’s exports have been bolstered by the government’s strategy to focus on six key sectors – engineering, electronics, pharma, chemicals, plastics, and agriculture – and target 20 major countries, accounting for 60 per cent of global imports.
This approach, he added, is likely to help India cross $800 billion in combined goods and services exports by the end of this fiscal year.
The October export surge was partly attributed to strong demand for the Christmas season, with engineering exports up 39.37 per cent to $11.25 billion, electronic exports jumping by 45.7 per cent to $3.43 billion, and ready-made garment exports rising 35 per cent to $1.22 billion.
Petro products
Meanwhile, petroleum product exports fell by 22 per cent to $4.58 billion. Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), highlighted India’s raw material strength and the appeal of sustainable, affordable products, which continue to attract international buyers.
Ashwani Kumar, President of the Federation of Indian Export Organisations (FIEO), expressed optimism about the double-digit growth in exports amid global economic uncertainties. However, he cautioned that rising tensions in the Middle East are creating logistical challenges, particularly for trade through the Red Sea route.
