Exports Rush To US Push-up Exports by 9 per cent in April

ENA Global 2025-05-16 16:06:57 New Delhi, May 16 (KNN) Indias merchandise exports recorded a robust growth of 9.1 per cent in April, reaching USD 38.49 billion—the highest pace in six months—driven by a sharp increase in shipments to the United States. Exporters accelerated deliveries ahead of the reciprocal tariffs announced by the US administration on April 2, which have since been suspended until July 8. Goods exports to the US surged 27.38 per cent year-on-year to USD 8.42 billion in April, marking a strong recovery from the marginal 0.65 per cent growth in March and reversing a four-month trend of contraction. Commerce Secretary Sunil Barthwal noted that the increase may also be partially attributed to a tariff differential advantage over competing economies. On the import front, India saw a sharper rise of 19.12 per cent to USD 64.91 billion in April, primarily due to higher inflows of crude oil and industrial inputs such as machinery and minerals. This uptick signals strengthening domestic manufacturing and investment activity. The trade deficit widened to USD 26.42 billion, the highest since November 2024, when it stood at USD 31.9 billion. Commerce Secretary Barthwal expressed confidence in Indias trade outlook, stating, With the optimism which has come in the month of April, I am very sure that India will maintain this export momentum and it should be a good year for us in spite of all the problems we will be facing in the external sector. He highlighted that India achieved record exports of USD 825 billion—including goods and services—in the previous financial year, underscoring the resilience of Indian exporters and the effectiveness of government strategies. While merchandise exports contracted by 3 per cent in FY24 and are projected to remain flat in FY25, the overall export performance was supported by strong growth in the services sector. Barthwal reiterated the governments targeted approach, focusing on 20 countries that account for 65 per cent of exports and six key sectors comprising 60 per cent of the export basket. He added that a similar strategy in six sub-sectors of services will continue into the current year. Services exports grew by 17 per cent in April to USD 35.31 billion, while imports rose 4.65 per cent to USD 17.54 billion. Federation of Indian Export Organisations (FIEO) President S C Ralhan emphasised the need for policy consistency, improved logistics, trade facilitation, and timely conclusion of free trade agreements (FTAs) with countries including the UK, US, EU, Oman, and the GCC to sustain export momentum. Ralhan also stressed the importance of affordable credit access for MSMEs and timely disbursal of incentives such as Interest Equalisation, RoDTEP, and other benefits to preserve competitiveness and meet export growth targets. Among major sectors, engineering goods exports rose by 11.28 per cent to USD 9.5 billion. Electronics exports led with a 39.51 per cent increase to USD 3.7 billion. Gems and jewellery exports returned to growth with a 10.74 per cent rise to USD 2.5 billion, and petroleum product exports expanded 4.68 per cent to USD 7.37 billion. Readymade garments also posted strong growth, up 14.43 per cent to USD 1.37 billion. On the import side, electronic goods saw a 31.19 per cent increase to USD 9.25 billion. Crude oil imports grew 25 per cent to USD 20.71 billion, despite falling international prices. Machinery imports rose 23.20 per cent to USD 4.67 billion, reflecting strong investment demand. (KNN Bureau) 42107 https://knnindia.co.in/news/newsdetails/global/exports-rush-to-us-push-up-exports-by-9-per-cent-in-april 2025-05-16 16:06:57 knnindia.co.in Exports Rush To US Push-up Exports by 9 per cent in April