Exports (merchandise & services) Surpassed Last year’s highest record

As per the latest estimates, India's total exports, which include both merchandise and services, are predicted to reach USD 70.21 billion in March 2024. However, this figure shows a negative growth of (-) 3.01 percent as compared to the same period in the previous year.

• On the other hand, the total imports in March 2024 are estimated to be USD 73.12 billion, which is a decrease of (-) 6.11 percent over March 2023. 
• This suggests a decline in the demand for foreign goods and services in the Indian market, which could have a significant impact on the overall economy. 
• Overall, while the predicted figures for both exports and imports in March 2024 are substantial, the negative growth rate for exports and the declining demand for imports indicate that the Indian economy may face some challenges in the coming year.

MERCHANDISE TRADE

Export of goods in March 2024 amounted to USD 41.68 billion, which is slightly lower than the USD 41.96 billion recorded in March 2023. 

Meanwhile, import of goods in March 2024 totaled USD 57.28 billion, which is also lower than the USD 60.92 billion recorded in March 2023.

Under merchandise exports, 17 of the 30 key sectors exhibited positive growth in March 2024 as compared to the same period last year (March 2023). 

These include in descending order: 

• Handicrafts Excl. Hand Made Carpet, Spices, Coffee, Organic & Inorganic Chemicals, Tobacco, Tea, Electronic Good, Carpet, Drugs & Pharmaceuticals, Plastic & Linoleum, Engineering Goods, Meat, Dairy & Poultry Products, Cereal Preparations & Miscellaneous Processed Items, Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc. , Fruits & Vegetables, RMG Of All Textiles and Ceramic Products & Glassware.

Under merchandise imports, 18 out of 30 key sectors exhibited negative growth in March 2024. 

• These include Gold, Newsprint, Fertilizers, Crude & Manufactured, Leather & Leather Products , Vegetable Oil , Metalliferous Ores & Other Minerals, Chemical Material & Products, Artificial Resins, Plastic Materials, Etc., Organic & Inorganic Chemicals, Pearls, Precious & Semi-Precious Stones, Textile Yarn Fabric, Made-Up Articles, Cotton Raw & Waste, Transport Equipment, Iron & Steel, Wood &  Wood Products, Coal, Coke & Briquettes, Etc., Petroleum, Crude & Products and Medicinal & Pharmaceutical Products.

SERVICES TRADE

• According to estimates, the value of services exported in March 2024 is expected to be USD 28.54 billion, which is a decrease from USD 30.44 billion in March 2023. 
• In March 2024, the value of services imported is estimated to be USD 15.84 billion. This is lower than the value of USD 16.96 billion recorded in March 2023.However, it is projected that services exports will grow by 4.39 percent during FY 2023-24 (April-March) compared to FY 2022-23 (April-March).

Trade deficit

• India's balance of trade has demonstrated a significant improvement during the fiscal year 2023-24 (April-March). 
• The estimated overall trade deficit for this period is USD 78.12 billion, which is a decrease of (-) 35.77% compared to the deficit of USD 121.62 billion recorded during the previous fiscal year 2022-23 (April-March). 
• The merchandise trade deficit during FY 2023-24 (April-March) is USD 240.17 billion, indicating a decline of (-) 9.33% as compared to the deficit of USD 264.90 billion during FY 2022-23 (April-March). This positive trend in India's trade balance is a promising development for the country's economy.