India’s Exports Show Strong Growth In October; Trade Deficit Widens

According to the data released by the Ministry of Commerce on Thursday, India’s combined merchandise and services exports reached a remarkable USD 73.21 billion in October 2024, marking a 19.07% year-on-year increase.

In October 2023, the total exports stood at USD 61.48 billion.

Exports of goods saw a significant boost, rising from USD 33.43 billion last year to USD 39.20 billion this October.

Meanwhile, the export of services surged from USD 28.05 billion to USD 34.02 billion during the same period, showcasing strong growth across sectors.

For the April-October period of the 2024-25 fiscal year, India’s total exports amounted to approximately USD 468.27 billion, up by 7.28% compared to the same period in 2023.

The government remains optimistic about achieving its target of USD 800 billion in total exports by the end of the fiscal year.

Imports also saw an uptick, rising from USD 77.33 billion in October 2023 to USD 83.33 billion this year.

This increase in imports contributed to a widening trade deficit, which rose by 5.36% from USD 60.02 billion to USD 63.24 billion in the current fiscal year.

Sunil Barthwal, Commerce Secretary stated, “It has been extremely good month for us, and not only our overall export progress has been extremely good, which we will show to you, but if you look at April to October, this has been the highest ever non petroleum exports from this country ever. So we have broken all the records. In India’s trade history, you’ll find that during April to October this is the highest so far.”

India’s Exports Set New Record At USD 778 Billion In FY 2023-24

In the previous fiscal year (2023-24), India set a new record for total exports, reaching USD 778 billion. This was a slight increase from USD 776.3 billion in 2022-23.

Service exports also saw a positive trend, growing from USD 325.3 billion in 2022-23 to USD 341.1 billion in 2023-24.

However, merchandise exports experienced a slight decline, falling from USD 451.1 billion to USD 437.1 billion.

The country’s overall trade deficit improved significantly, narrowing from USD 121.6 billion in 2022-23 to USD 75.6 billion in 2023-24, reflecting improved export performance.

One of the key measures implemented by the government was the introduction of the Production Linked Incentive (PLI) scheme across multiple sectors, including electronics.

This initiative aimed to boost the competitiveness of Indian manufacturers on the global stage, attract foreign investments, increase exports, integrate India into the global supply chain, and reduce reliance on imports. These efforts have shown positive results.

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