India’s export sector has shown positive momentum in July 2024, with total exports (merchandise and services combined) estimated to have grown by 2.81% compared to July 2023. This growth reflects the continued resilience of the Indian economy, as the cumulative overall exports during the April-July 2024 period are estimated to have increased by 6.65%, highlighting the nation’s steady expansion in global trade.
Merchandise Exports and Imports: Key Insights
Merchandise exports during July 2024 were valued at USD 33.98 billion, slightly down from USD 34.49 billion in July 2023. On the other hand, merchandise imports during July 2024 were significantly higher at USD 57.48 billion, compared to USD 53.49 billion in July 2023. This increase in imports contributed to a merchandise trade deficit of USD 23.5 billion for the month.
Cumulatively, the merchandise exports for the April-July 2024 period reached USD 144.12 billion, reflecting a 4.15% growth from the USD 138.39 billion recorded during the same period in 2023. However, merchandise imports during the same period stood at USD 229.70 billion, up from USD 213.53 billion in the previous year, resulting in a cumulative trade deficit of USD 85.58 billion, compared to USD 75.15 billion in April-July 2023.
Sectoral Growth Drivers
Several key sectors have been pivotal in driving the growth of India’s merchandise exports in July 2024. Electronic goods led the charge, witnessing an impressive 37.31% increase, from USD 2.04 billion in July 2023 to USD 2.81 billion in July 2024. Engineering goods exports also showed positive growth, rising by 3.66% to reach USD 9.04 billion, up from USD 8.72 billion in the previous year.
The pharmaceutical sector continued its robust performance, with exports of drugs and pharmaceuticals increasing by 8.36%, from USD 2.13 billion in July 2023 to USD 2.31 billion in July 2024. In addition, the meat, dairy, and poultry products sector recorded a staggering 56.18% growth, with exports rising from USD 0.29 billion in July 2023 to USD 0.46 billion in July 2024. The Ready-Made Garments (RMG) of all Textiles sector also performed well, with exports growing by 11.84%, from USD 1.14 billion in July 2023 to USD 1.28 billion in July 2024.
Non-petroleum and non-gems & jewellery exports saw a steady increase of 5.69% in July 2024, with exports reaching USD 26.92 billion compared to USD 25.47 billion in July 2023. This growth underscores the broad-based nature of India’s export expansion, driven by various manufacturing and value-added sectors.
Total Trade: April-July 2024 Overview
India’s total exports (merchandise and services combined) for July 2024 are estimated at USD 62.42 billion, registering a 2.81% growth from USD 60.71 billion in July 2023. Meanwhile, total imports (merchandise and services combined) for July 2024 are estimated at USD 72.03 billion, marking a 7.14% increase compared to USD 67.23 billion in July 2023. This resulted in a trade deficit of USD 9.61 billion for the month, widening from USD 6.52 billion in July 2023.
Cumulatively, during April-July 2024, India’s total exports are estimated at USD 261.47 billion, up by 6.65% from USD 245.18 billion in the corresponding period of the previous year. Total imports during this period were estimated at USD 292.64 billion, reflecting a 7.30% increase from USD 272.72 billion in April-July 2023. Consequently, the overall trade deficit for April-July 2024 widened to USD 31.17 billion from USD 27.55 billion in the previous year.
Services Trade: Strong Performance Continues
The services sector continued to be a strong performer, with the estimated value of services exports for July 2024 reaching USD 28.43 billion, compared to USD 26.22 billion in July 2023. Services imports also grew, with the estimated value for July 2024 standing at USD 14.55 billion, up from USD 13.74 billion in July 2023.
For the April-July 2024 period, services exports are estimated at USD 117.35 billion, showing a robust 9.89% growth from USD 106.79 billion in April-July 2023. Services imports during the same period are estimated at USD 62.95 billion, up from USD 59.19 billion in the previous year. The services trade surplus for April-July 2024 is estimated at USD 54.40 billion, a significant increase from the USD 47.60 billion recorded in the corresponding period of 2023.
Top Export Destinations and Import Sources
The top export destinations showing positive growth in July 2024 compared to July 2023 include the Netherlands (29.18%), the USA (3.15%), Tanzania (53.14%), Singapore (14.28%), and Mexico (25.91%). For the April-July 2024 period, the top destinations were the Netherlands (38.32%), the USA (9.06%), the UAE (13.48%), Malaysia (51.86%), and Singapore (24.4%).
On the import side, the top sources exhibiting growth in July 2024 compared to July 2023 were the UAE (84.87%), China (13.05%), Russia (22.56%), Qatar (34.61%), and Indonesia (15.05%). The same sources showed strong growth for the April-July 2024 period, with the UAE (47.07%), Russia (20.33%), China (9.66%), Iraq (19.4%), and Indonesia (17.19%) leading the way.
Conclusion
India’s export sector has continued to show resilience and growth in 2024, with significant contributions from key sectors such as electronics, engineering goods, pharmaceuticals, and textiles. Despite challenges in merchandise trade, the services sector has remained robust, contributing to an overall positive trade performance. With the government’s continued focus on boosting exports and diversifying markets, India is well-positioned to maintain its trajectory of growth in the global trade arena.
