NEW DELHI: India’s goods exports jumped 17% to $39.2 billion in Oct, the fastest in 28 months, while imports grew at a modest 3.8% to hit a monthly record of $66.3 billion, resulting in a trade deficit of $27.1 billion.
While attributing the exports growth to Christmas demand, commerce secretary Sunil Barthwal said the pace now will be better than last year and overall exports could hit a record high in 2024-25, crossing the $800 billion mark.
“The focus on certain sectors and regions is yielding results. Our focus on manufacturing competitiveness, due to PLI and other schemes, is also yielding results,” Barthwal told reporters, adding that non-oil exports during April-Oct were the highest recorded.
The commerce department is focusing on six sectors — engineering, electronics, pharma, chemicals, plastics and agriculture — and 20 countries, which account for 60% of global imports. The six products have a two-third share of global imports.
In recent months, India’s export growth has been muted due to a weak demand in Europe and the US, disruptions caused by tension in west Asia as well as due to a fall in commodity prices. Between April and Oct, exports are estimated to have increased 3.3% to $252 billion, while imports were 5.6% higher at $419 billion.
While electronics exports shot up 45% to $3.4 billion in Oct, engineering goods ($11.3 billion) and readymade garments ($1.2 billion) have seen a 35% rise with chemicals registering a 27% growth to $2.7 billion.
“This is the time when the supply chain is getting re-aligned due to the Bangladesh crisis and the global buyers looking for China’s alternative. Additionally, ongoing wars have disrupted the traditional trade routes adding to the cost burden. This is the appropriate time for govt to whole-heartedly support this labour-intensive sector through handholding, capacity augmentation, skilling, investment and sustained financial support to this MSME-driven sector,” said Mithileshwar Thakur, secretary general at AEPC, the lobby group for garments.
Fieo president Ashwani Kumar sought steps to ease the liquidity crunch through deeper interest subvention support and extension of interest equalisation scheme for at least five years.
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