Secretary of Department of Commerce in Ministry of Commerce & Industry Sunil Barthwal
India’s merchandise exports grew 11.87% in February to hit an 11-month high of $41.4 billion, whereas imports surged at a sooner tempo of 12.2% to hit $60.11 billion, because of a pointy spike in gold imports which hit a four-month peak of $6.15 billion.
February marks solely the fifth event that items exports have registered constructive development in 2023-24, recording the best uptick thus far. However, rising imports lifted the commerce deficit to $18.7 billion from the nine-month low of 17.5 billion in January.
“The export numbers in February have surpassed all our expectations, especially as it has been achieved despite tight monetary conditions in most markets, ongoing conflicts and lower commodity prices,” Commerce Secretary Sunil Barthwal mentioned.
Exuding hope that this 12 months’s total exports, together with Services commerce, could surpass final 12 months’s document $776 billion tally, Mr. Barthwal mentioned the World Trade Organisation has not too long ago projected a better 3.3% development in world commerce for 2024. “We feel that this will now be a rising tide for exports that will show in 2024-25 too,” he reckoned.
In the primary 11 months of the 12 months, items exports have contracted 3.5% to $395 billion, whereas imports have dropped 5.3% to $620 billion, easing the commerce deficit to $225 billion from $246 billion recorded in the corresponding interval of 2022-23.
“From the trade deficit and current account deficit perspectives, there has been an improvement but rising imports of gold and electronics and the decline in exports of garments should raise a red flag,” mentioned Bank of Baroda chief economist Madan Sabnavis. Low world demand has damage exports of readymade clothes (down 11%) in addition to engineering items, that are down 9.3% thus far this 12 months, he mentioned.
