NEW DELHI: Despite weak global economic conditions, India recorded the highest annual exports (merchandise and services) in FY24 at $776.68 billion, surpassing $776.40 billion in FY23. In FY23, the country for the first time crossed the $750 billion export mark.
The better-than-expected numbers in FY24 was due to strong performance by services exports, which posed 6% growth at $340 billion. Though, merchandise exports during the year fell by 3% to $437 billion compared to $451 billion in FY23.
Overall imports to India fell by 4.8% to $854.80 billion, helping the country narrow the trade deficit to $78 billion compared to $121 billion in the previous year. Merchandise trade deficit in FY24 also narrowed from $265 billion in FY23 to $240 billion.
“This year was a very difficult year for international trade, not only because the Ukraine-Russia conflict continued but also because another conflict started in the gulf region creating problems. There were huge issues in the Red Sea and Panama Canal. But we have beaten all odds, and breached last year’s exports numbers,” commerce secretary Sunil Barthwal told the media on Monday.
Meanwhile, goods trade deficit fell to an 11-month low of $15.6 billion owing to a sharper drop in imports than exports during the month. Merchandise exports fell by 0.7% to $41.68 billion in March 2024, while imports fell by 6% to 57.28%.
Under merchandise exports, 17 of the 30 key sectors showed growth FY24 (April-March). These included Iron Ore (118%), electronic goods (24%), Tobacco (19.5%), ceramic products & glassware (14.44%), and fruits & vegetables (13.86%).
Major imports that showed decline in FY24 include cotton raw & waste (58%), fertilisers, crude & manufactured (39%), Sulphur & Unroasted Iron Pyrites (38%), vegetable oil (29%), and pearls, precious & semi-precious stones (22%). Imports of petroleum, crude & products declined by 14.23% during the year. Gold imports in March fell by 53% even though for the full year, it showed a high 30% growth.
In absolute terms, exports to UAE grew the highest at $4 billion, followed by Singapore ($2.5 billion), UK ($1.52 billion) and China ($1.33 billion). Imports from Russia showed the highest jump by $15.23 billion followed by Switzerland ($5.45 billion) and China ($3.24%).