In a recent announcement from New Delhi, India’s merchandise exports have showcased a commendable 3.12% increase to $36.92 billion in January, marking the second consecutive month of positive growth. Despite prevailing global headwinds, this upward trend reflects the resilience of India’s export sector.
This encouraging growth extends beyond merchandise exports, with overall exports, encompassing both goods and services, estimated to have risen by 9.27% to $69.72 billion in January, according to government data.
Commerce Secretary Sunil Barthwal expressed satisfaction with this achievement, particularly amidst challenges such as the Red Sea crisis and economic downturns in advanced economies. He emphasized the significance of this growth, highlighting its substantive nature rather than being merely marginal.
The positive trajectory in export performance marks a notable shift from earlier in the financial year, which saw consecutive months of contraction. Despite a sluggish start, India’s merchandise exports have progressively recovered, showcasing resilience and adaptability in navigating global uncertainties.
Notably, January also witnessed a rise in merchandise imports by about 3% to $54.41 billion, marking a turnaround after two consecutive months of contraction. This led to a narrowing of the trade deficit to a nine-month low at $17.49 billion.
Looking ahead, Barthwal expressed optimism about sustaining this growth momentum, emphasizing the government’s efforts to lower logistics costs and explore new markets with a broader product range. Additionally, ongoing initiatives aim to identify and address non-tariff barriers faced by Indian exporters in global markets.
Industry stakeholders, including the Federation of Indian Export Organisations, echoed this optimism, emphasizing the resilience of the export community amidst challenges. They identified key growth drivers in sectors such as petroleum products, engineering goods, and pharmaceuticals, highlighting their role in fostering employment and economic growth.
As India looks to the future, efforts to address challenges such as the Red Sea crisis and conclude key trade agreements remain paramount. By fostering a conducive environment for exporters, including access to credit, marketing support, and efficient logistics, India aims to sustain and enhance its export performance in the coming fiscal year.
Overall, the positive growth in Indian merchandise exports reflects a promising outlook for the country’s trade sector, underscoring its resilience and adaptability in the face of global uncertainties.