Saturday, 20 Jul, 2024
IndiaTracker.in
Economy 21-May, 2024

New Delhi’s overall exports in April increase by 7%: Merchandise trade deficit widens to $19.1 billion

By: Team India Tracker

New Delhi’s overall exports in April increase by 7%: Merchandise trade deficit widens to $19.1 billion

Merchandise exports in April 2024 were $34.99 Billion, as compared to $34.62 Billion in April 2023. Image Source: IANS

India’s total exports (Merchandise and Services combined) in April 2024 is estimated to be $64.56 Billion, exhibiting a positive growth of 6.88 percent over April 2023.

Data released by the commerce and industry ministry on Wednesday showed that India's goods trade gap widened to a five-month high of $19.1 billion in April with a ten percent rise in imports and a one percent rise in exports due to weak global demand in the western countries and a sharp surge in gold imports. The trade gap widened to $19.1 billion in April of this year compared to $14.34 billion in April of last year, despite the fact that goods exports in April of this year, at $34.99 billion, were 1.09 percent more than those of April 2023, when $34.62 billion was shipped.

India’s total exports (Merchandise and Services combined) in April 2024 is estimated to be $64.56 Billion, exhibiting a positive growth of 6.88 percent over April 2023. Total imports (Merchandise and Services combined) in April 2024 is estimated to be $71.07 Billion, exhibiting a positive growth of 12.78 percent over April 2023.

Merchandise exports in April 2024 were $34.99 Billion, as compared to $34.62 Billion in April 2023. Talking about the merchandise imports, in April 2024 were $54.09 Billion, as compared to $49.06 Billion in April 2023.

Total Trade in April 2024

Source: Ministry of Commerce and Industry

“India’s merchandise trade deficit widened sharply to $19.1 billion in April 2024 from $14.4 billion in the year-ago-month. The widening in the non-oil deficit in April 2024 compared to April last year was entirely driven by a tripling in gold imports, partly aided by the surge in gold prices,” Aditi Nayar, Chief Economist, Head Research and Outreach, ICRA Ltd said.

Official data shows that imports of gold increased by 2089.9 percent to $3.11 billion in April of this year from $1 billion in the same month the previous year. In April of this year, imports of "petroleum, crude & products" increased by 20.22 percent to $16.46 billion from $13.69 billion in the same month the previous year.

Total Merchandise Trade in April 2024

Source: Ministry of Commerce and Industry

Commerce Secretary Sunil Barthwal said, “The main drivers of export growth have been electronic, organic and inorganic chemicals, drugs and pharmaceuticals and petroleum products have done well. These four sectors have done extremely well. Gold imports are well within the average trend. It is not an exception and it is not alarming. Because of conflicts and geo-politics, central banks are buying gold. There is a price effect too. Since gold prices have increased, it may appear very high in terms of value but it isn’t in terms of volume.”

India saw a significant 14 percent increase in services exports in April, reaching $29.57 billion, from $25.78 billion in April 2023. Additionally, imports increased from $13.96 billion to $16.97 billion, a 21.56 percent increase.

Total Service Trade in April 2024

Source: Ministry of Commerce and Industry

Talking about India’s trade in FY 2023-24, India’s overall exports (Merchandise and Services combined) in FY 2023-24 are estimated to be $776.68 Billion, exhibiting a positive growth of 0.04 percent over FY 2022-23. Overall imports in FY 2023-24 are estimated to be $854.80 Billion, exhibiting a negative growth of (-) 4.81 percent over FY 2022-23.          

Data from the economic research tank GTRI shows that, with two-way trade reaching US$118.4 billion in FY 2023–2024, China has surpassed the US to become India’s largest trading partner. Bilateral commerce between the US and India was US$118.3 billion during that time. In 2021–2022 and 2022–2023 the US was India’s top trading partner.

According to GTRI's estimate, India's exports to China reached US$16.67 billion in FY24, a noteworthy growth of 8.7 percent. Iron ore, cotton yarn/fabrics/madeups, handloom items, spices, fruits and vegetables, plastic and linoleum were among the major industries propelling this boom. In the meantime, moderate growth in imports from China—totaling US$101.7 billion—of 3.24 percent occurred. High-tech products such as laptops, PCs, and parts for smartphones and telecoms, as well as industrial inputs like plastic, steel, and iron, were among the main imports.

Indian exports to the United States were US$77.5 billion in FY24 as opposed to US$78.54 billion in 2022–2023—a 1.32 percent decline. Furthermore, the report shows that imports from the US decreased by roughly 20 percent to reach US$40.8 billion.

Data from the ministry of commerce indicates that China was India's top commercial partner from 2013–14 through 2017–18 and again in 2020–21. The United Arab Emirates was India's leading trading partner before China took over. Nonetheless, with US$83.6 billion in trade volume in FY24, the UAE came in third place. Closely after were Singapore with US$35.6 billion in trade with India, Saudi Arabia with US$43.4 billion, and Russia with US$65.7 billion.

Commenting on India’s trade in April 2024, Engineering Export Promotion Council of India (EEPC) India Chairman, Arun Kumar Garodia said, “After recording positive growth for four consecutive months despite global challenges, engineering exports from India dipped 1.54 per cent year-on-year in April 2024 to $8.66 billion. The decline could be attributed to weak demand from some key markets and logistics issues arising from the Red Sea crisis.” He added, “In recent weeks there have been some signs of improvement in global economic outlook and as a result trade should rebound. While the exporting community continues to grab emerging opportunities and penetrate new markets, some of the latest developments suggest demand scenarios from traditional markets would improve.”

Share: