Exports grow for 3rd month in a row, trade deficit rises

India’s exports grew for the third straight month, rising 2.6% to $35.2 billion, while imports increased 5% $56.2 billion. As a result, trade deficit rose to $21 billion, compared with $19.2 billion a year ago. The engineering goods, whose exports rose over 10% to $9.4 billion in June and electronics (16.9% to $2.8 billion), were among the top performers, even as petrol and diesel (down 18%) and gems and jewellery (1.4% lower) were impacted. In contrast, import growth was driven by crude, which jumped 19.6% to $15 billion and electronic goods which were 16% higher at $7.7 billion.

Going by the current trend, the exports of goods and services may cross $800 billion this fiscal. During the first quarter of 2024-25, the exports of goods and services were estimated at around $200 billion. The exporters during the first quarter would have seen double-digit growth had it not been for the logistics disruptions, such as lack of container availability, shipping space, irregular shipping schedule and ships skipping Indian ports. The Commerce Department is focusing on six major sectors — engineering, textiles, apparel, electronics, pharmaceuticals, chemicals, plastics and agriculture to 20 countries to boost exports.