NEW DELHI: In view of global slowdown, the country’s merchandise exports increased only by 2.6% year-on-year in June, a significant decrease from the 13.5% growth witnessed in May, according to the commerce ministry data released on Monday.
The total value of exports in June hit a seven-month low at $35.2 billion. Meanwhile, merchandise imports in June increased by 4.9% to reach $56.18 billion. This growth was driven by a rise in imports of goods like petroleum products, electronic items, and metals, among others.
In June, the trade deficit in India decreased to $20.98 billion from a seven-month high of $22 billion in May.
However, it widened compared to $19.2 billion in June of the previous year. Commerce Secretary Sunil Barthwal during the media briefing mentioned that if global inflation decreases and growth continues, trade will also stay strong. However, Barthwal also stressed upon the need for being cautious amid current geopolitical tensions or any new conflicts that may arise.
Barthwal expressed optimism, stating that India is on track to surpass $800 billion in total exports (goods and services) for the current fiscal year. He highlighted that quarterly figures are positive, and services exports are showing steady growth.
“If you look at our strategy, we are focusing on 20 countries of significance. We are also looking at six major sectors of the economy so that we can benefit from growth factors in these sectors and these economies,” Barthwal said during media briefing.
The cumulative value of exports during the April-June 2024 period stood at $109.96 billion as compared to $103.89 billion during April-June 2023, registering a positive growth of 5.84%. It is to be noted that exports excluding petroleum and gems and jewellery, increased by 8.5% to $27.43 billion.
The growth was primarily led by engineering goods (10.27%), electronic goods (16.91%), drugs and pharmaceuticals (9.93%), coffee exports (70%) and organic and inorganic chemicals (3.32%).