Engineering & Electronic Goods Clock Double Digit Export Growth

New Delhi, Jul 16 (KNN) India's merchandise exports continued their upward trajectory in June, marking the third consecutive month of growth. According to the latest data released by the Commerce Ministry, exports rose by 2.55 per cent to USD 35.2 billion.

However, the country's import bill saw a more substantial increase of 5 per cent, reaching USD 56.2 billion, resulting in a 9.4 per cent widening of the trade deficit compared to the same period last year.

Commerce Secretary Sunil Barthwal reported that combined merchandise and services exports reached a record high of USD 200.3 billion in the first quarter of the 2024-25 fiscal year, surpassing the previous peak of USD 197.1 billion set in 2022-23.

While the Reserve Bank of India is yet to release official figures for services exports in June, the Ministry has estimated the value at USD 30.3 billion, representing an 8.9 per cent year-on-year increase.

Barthwal expressed optimism about the export outlook, citing improving global growth and declining inflation trends. He suggested that if current growth patterns persist, India could potentially exceed USD 800 billion in total exports this year.

The government is reportedly focusing on six key sectors and 20 countries to drive export growth.

The export performance in June was particularly strong in certain sectors. Engineering and electronics goods saw increases of 10.3 per cent and 16.9 per cent respectively, while drugs and pharmaceuticals, chemicals, and coffee also showed significant growth.

However, petroleum exports experienced a sharp decline of 18.3 per cent, dropping to USD 5.5 billion.

On the import side, gold shipments decreased by 38.7 per cent to USD 3.06 billion, while electronics goods imports rose by 16 per cent to USD 7.6 billion. Notably, silver imports surged by 377.4 per cent to USD 210.7 million.

The expanded trade deficit for the first quarter, which reached USD 62.3 billion compared to USD 56.2 billion in the previous year, is expected to impact India's current account balance.

While the export growth presents a positive signal for India's economy, the widening trade deficit and fluctuations in key export sectors underscore the complex challenges facing the country's international trade position in the current global economic climate.

(KNN Bureau)