Saturday, 05 Oct, 2024
India’s total exports during April-August 2024 is estimated at $328.86 Billion registering a positive growth of 5.35 percent. Image Source: IANS
The Ministry of Commerce and Industry said that the reason behind the increase in the value of imports and decrease in value of exports was due to the increase in gold imports in August 2024.
According to the data released by the Ministry of Commerce and Industry, India’s merchandise exports decreased from $38.28 billion in August 2023 to $34.71 billion in August 2024. New Delhi’s merchandise imports increased to $64.36 billion in August 2024 from $62.30 billion in the same month last year. The Ministry of Commerce and Industry said that the reason behind the increase in the value of imports and decrease in value of exports was due to the increase in gold imports in August 2024. Gold imports more than doubled to a new high of over $10 billion.
Total Trade during August 2024
Source: Ministry of Commerce and Industry
India’s total exports during April-August 2024 is estimated at $328.86 Billion registering a positive growth of 5.35 percent. Total imports during April-August 2024 is estimated at $375.33 Billion registering a growth of 7.20 percent. The total exports increased from $312.17 billion during April-August 2023 to $328.86 billion during the same period in 2024. Talking about imports, they increased from $350.11 billion during April-August 2023 to $375.33 billion in the same period during this year.
Total Trade during April-August 2024
Source: Ministry of Commerce and Industry
The surge in imports, according to Commerce Secretary Sunil Barthwal, can be linked to higher prices, lower customs duties, and stocking ahead of the holiday season. The data suggests that a portion of the gold that was smuggled as a result of high tariffs is now entering the country through legal channels. As a result, the trade imbalance increased to $29.7 billion, which is only slightly less than the $30.4 billion difference between imports and exports that was noted in October of previous year. "It is not a matter of concern for an emerging market economy. There is huge consumption demand coming from an economy that is growing at double the rate of the world economy. As exports grow and you join the global value chain, you have to import certain things to export. To the extent that there is foreign exchange (reserves), these are perfectly normal numbers," Barthwal said.
He stated that the decline in oil prices, which reduced the value realized for gasoline and diesel, the decline in the market for jewelry and stones, and government controls on rice exports were the main causes of the export decline. The export decline is the largest since July 2023, when it decreased by 9.9 percent. Reduced prices for crude oil caused imports to drop by over 32 percent to $11 billion, while exports of petroleum products decreased by almost 38 percent to approximately $6 billion.
According to Barthwal, demand remained poor in the US and Europe, and China was experiencing a slowdown. Several nations had witnessed a fall in imports, which was having an impact on exports. Exports have been negatively impacted by trade disruptions, according to Fieo President Ashwani Kumar. These disruptions are mostly caused by logistical issues, such as a lack of shipping space, an inconsistent shipping schedule, and ships avoiding Indian ports.
Talking about India’s merchandise trade, merchandise exports during August 2024 were $34.71 billion as compared to $38.28 billion in August 2023. Merchandise imports during August 2024 were $64.36 billion as compared to $62.30billion in August 2023.
Merchandise Trade during August 2024
Source: Ministry of Commerce and Industry
Coming over to merchandise exports during April-August 2024, they were $178.68 billion as compared to $176.67 billion during April-August 2023. Merchandise imports during April-August 2024 were $295.32 billion compared to $275.83 billion during April-August 2023. Merchandise trade deficit during April-August 2024 increased to $116.64 billion as compared to $99.16 billion during April-August 2023.
Merchandise Trade during April-August 2024
Source: Ministry of Commerce and Industry
The value of New Delhi’s service export for August 2024 is $30.69 billion as compared to $28.71 billion in August 2023. The estimated value of services imports for August 2024 is $15.70 billion as compared to $15.09 billion in August 2023.
Services Trade during August 2024
Source: Ministry of Commerce and Industry
The service exports during April-August 2024 increased to $150.18 billion from $135.50 billion in April-August 2023. The estimated value of service imports during April-August 2024 is $80 billion as compared to $74.28 billion in April-August 2023. The services trade during April-August 2024 is $70.18 billion as compared to $61.22 billion in April-August 2023.
Services Trade during April-August 2024
Source: Ministry of Commerce and Industry
When a nation's imports within a specific time period surpass its exports, a trade deficit arises. Since more money is spent on foreign goods and services than is made from selling domestically produced ones overseas, it signifies a flight of domestic currency to international markets.
