New Delhi, Nov 16 (KNN) In October, India's total exports, encompassing both goods and services, are projected to reach USD 62.26 billion, demonstrating a favourable year-on-year expansion of 9.43 percent, official data released on Wednesday showed.

India’s merchandise exports expanded by 6.21 per cent on an annualised basis in October to USD 33.57 billion, the second monthly positive growth in the current financial year amid global headwinds.

The merchandise exports first broke the monthly contraction sequence, which started from February, in August this year. It, however, saw a year-on-year contraction of 2.6 per cent in September before expanding again by 6.21 per cent in October, according to official data released on Wednesday.

Based on the internal assessment of exports in the first week of November, commerce secretary Sunil Barthwal said, there is a “substantial positive trend” despite a fall in commodities prices. “Green shoots are stabilising,” the commerce secretary added, referencing his own comment on October 13 that “green shoots” were visible.

India’s merchandise imports also rose in October to USD 65.03 billion mainly because of demand for gold and silver for personal use in the festive season, posting a 12.3 per cent year-on-year growth, a commerce ministry official said. This led to a record USD 31.46 billion trade deficit in the month, according to the latest data. India’s gold imports in the month jumped by 95.4 per cent to USD 7.23 billion and silver by 124 per cent to USD 1.8 billion.

Dragged by five months of contractions in export growth between April to September (barring a positive growth in August), India’s cumulative merchandise exports in April-October fell year-on-year (y-o-y) by per cent to USD 244.89 billion, while imports fell 8.95 per cent to USD 391.96 billion, leading to a trade deficit of USD147.07 billion compared to a higher deficit of USD 167.14 billion in April-September 2022.

Barthwal said the global economic scenario is dim because of geopolitical upheavals and prevailing high interest rates in major economies, but that a focused approach has helped India.

The government is exploring new markets and insisting on reducing non-tariff barriers (NTBs) in some of the existing markets. “I’m hopeful that we will be crossing the last year’s figures,” he said, indicating a y-o-y positive growth in overall trade in FY24 despite a fall in commodity prices. “But we are waiting and watching,” he said pointing at global political and economic uncertainties.

India’s merchandise exports crossed USD 451 billion in 2022-23 while overall exports (goods and services together) in FY23 was a record USD 770 billion. In October, 22 out of 30 main sectors showed positive growth.

(KNN Bureau)