India's merchandise exports dip marginally in March, FY24 shipments at USD 437 billion

India's merchandise exports declined marginally in March to USD 41.68 billion, while for the entire 2023-24 it dipped 3.11 per cent to USD USD 437.06 billion, as geopolitical issues continued to hamper global shipments. Imports, too, declined 5.98 per cent to USD 57.28 billion in March, taking the trade deficit to 15.6 billion during the month. According to commerce ministry data released on Monday, the imports during 2023-24 stood at 677.24 billion, down 5.41 per cent from USD 715.97 billion in the preceding year.

The trade deficit or gap between imports and exports worked to be USD 240.17 billion. Replying to a query on escalation of the crisis in the Middle east, Commerce Secretary Sunil Barthwal, who was briefing about the trade data, said the ministry was monitoring the situation and will take "appropriate action". However, he did not elaborate due to the Model Code of Conduct in the wake of the ongoing Lok Sabha election.

The overall exports (merchandise + services) are estimated to surpass last year's highest record, the Secretary said. It is estimated to reach USD 776.68 billion in 2023-24 as compared to USD 776.40 billion in 2022-23. Barthwal said March witnessed the highest monthly merchandise exports during 2023-24 at USD 41.68 billion.

Main drivers of merchandise export growth in 2023-24 include electronic goods, drugs and pharmaceuticals, engineering goods, iron ore, cotton yarn/fabs/made-ups, handloom products and ceramic products and glassware. Electronic goods exports increased 23.64 per cent from USD 23.55 billion in 2022-23 to USD 29.12 billion in 2023-24. Drugs and pharmaceuticals exports increased 9.67 per cent from USD 25.39 billion in 2022-23 to USD 27.85 billion during the fiscal year. Data showed that engineering goods exports increased 2.13 per cent to USD 109.32 billion in 2023-24. The commerce ministry also said the overall trade deficit is estimated to significantly improve 35.77 per cent from USD 121.62 billion in 2022-23 to USD 78.12 billion in 2023-24