India Achieves Record Exports Of USD 778 Billion In 2023-24

India has marked a historic achievement in its export sector, reaching a record high of USD 778 billion in the fiscal year 2023-24, as reportedly.  This figure represents a significant increase from the combined goods and services exports of USD 776.3 billion recorded in the previous fiscal year of 2022-23. Notably, the services exports experienced a notable uptick from USD 325.3 billion to USD 341.1 billion, while merchandise exports saw a slight decline from USD 451.1 billion to USD 437.1 billion.

This remarkable growth in exports can be attributed to various initiatives undertaken by the government, including the implementation of the Production Linked Incentive (PLI) scheme across diverse sectors such as electronics. The PLI scheme aims to enhance the global competitiveness of Indian manufacturers, attract investments, boost exports, integrate India into the global supply chain, and reduce reliance on imports. These strategic measures have evidently yielded positive outcomes, driving India’s export performance to new heights.

Notably, India’s exports have surged significantly to key markets such as China, Russia, Iraq, UAE, and Singapore in the fiscal year 2023-24, although from a relatively low base. Additionally, countries like the UK, Australia, Saudi Arabia, the Netherlands, and South Africa have also witnessed substantial growth in imports from India, reflecting the expanding global footprint of Indian exports.

In contrast to the surge in exports, India’s overall imports witnessed a decline from USD 898.0 billion in 2022-23 to USD 853.8 billion in 2023-24. Both merchandise and services imports experienced a decline during this period. Consequently, the overall trade deficit significantly improved from USD 121.6 billion to USD 75.6 billion, highlighting a favorable trade balance for India.

Looking ahead, the momentum in India’s export sector seems promising, as evidenced by the performance in the first month of the fiscal year 2024-25. In April, India’s exports, encompassing both merchandise and services, increased from USD 60.40 billion to USD 64.56 billion. However, imports rose from USD 63.02 billion to USD 71.07 billion during the same period, leading to a widening trade deficit from USD 2.62 billion to USD 6.51 billion on a yearly basis.

While certain sectors such as electronic goods, organic and inorganic chemicals, petroleum products, and drugs and pharmaceuticals witnessed growth in exports during April, others such as engineering goods, iron ore, gems and jewellery, marine products, and oil meals experienced a decline. Similarly, imports of commodities like petroleum crude and products, gold, electronic goods, pulses, and vegetable oil increased, while those of pearls, precious metals, and precious stones, as well as iron and steel, declined.

Overall, India’s export trajectory remains on an upward trajectory, underpinned by strategic initiatives and global demand dynamics.