Goods Exports Surge 6.21 Per Cent To USD 33.57 Billion In October
India's exports recorded a 6.21 per cent increase, reaching USD 33.57 billion in October this year compared to USD 31.6 billion in the same period last year, according to the Ministry of Commerce and Industry. On the other hand, imports also experienced an uptick, totaling USD 65.03 billion for the month, up from USD 57.91 billion in October 2022.
The trade balance for October depicted a deficit of USD 31.46 billion. Examining the April-October period for this fiscal year, exports faced a contraction of 7 per cent, settling at USD 244.89 billion.
The overall exports, combining merchandise and services, for April-October 2023 are estimated at $437.54 billion, reflecting a negative growth of (-) 1.61 per cent compared to the same period in 2022. Meanwhile, overall imports during April-October 2023 are projected to be USD 495.17 billion, indicating a negative growth of (-) 7.37 per cent over the corresponding period in 2022, according to the ministry statement.
Key Contributors To Export Growth
Key contributors to the export growth in October 2023 include drugs and pharmaceuticals, engineering goods, electronic goods, cotton yarn/fabs, handloom products, iron ore, ceramic products, glassware, meat, dairy, and poultry products. Noteworthy is the positive surge in non-petroleum and non-gems and jewellery exports, witnessing 11.74 per cent jump from USD 21.99 billion in October 2022 to USD 24.57 billion in October 2023.
Drugs and pharma exports surged by 29.31 per cent in October, reaching USD 2.42 billion compared to USD 1.87 billion in October 2022. Engineering goods exports displayed growth of 7.2 per cent, moving from USD 7.55 billion in October 2022 to USD 8.09 billion in October 2023. Electronic goods exports also witnessed substantial growth, marking a 28.23 per cent increase at USD 2.38 billion during October 2023 compared to USD 1.85 billion in October 2022.
Agricultural exports maintained their positive trajectory in October 2023, with notable growth in cereal preparations, miscellaneous processed items (40.95 per cent), oil seeds (29.7 per cent), fruits and vegetables (24.48 per cent), oil meals (17.32 per cent), spices (10.78 per cent), coffee (8.45 per cent), tea (4.12 per cent), and cashew (3.29 per cent).
Over the seven-month period, imports showed a decline of 8.95 per cent, settling at USD 391.96 billion. Commerce Secretary Sunil Barthwal expressed optimism, interpreting the trade numbers in October as indicative of 'green shoots'.
Agreement To Boost Supply Chain
Meanwhile, India has entered into an agreement with the United States and 12 other members of the Indo-Pacific Economic Framework for Prosperity (IPEF) to diminish reliance on China and mitigate economic risks associated with supply chain disruptions, the Commerce Ministry said.
“India joins the US and 12 other IPEF partners to ink the IPEF supply chain resilience agreement that will fortify and strengthen global supply chains and foster adaptability, stability and sustainability,” said Union Minister Piyush Goyal.
The agreement holds potential benefits, including diversification of supply chains, attraction of investments, deeper integration of India into global value chains, support for MSMEs, and the establishment of a seamless regional trade ecosystem facilitating the flow of Indian products, according to the ministry.
The government implemented a Production Linked Incentive (PLI) scheme across diverse sectors, such as electronic goods, aiming to bolster the global competitiveness of Indian manufacturers. The objective was to attract investments, boost exports, integrate India into the global supply chain, and diminish reliance on imports. These initiatives appear to have yielded positive outcomes.