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Source: The post on “Status of India’s Merchandise and Services Export” has been created, based on the article “Imports continue to outpace growing exports; trade deficit widens by 9.4%” published in “The Hindu” on 16th July 2024
Why in news?
The Commerce Ministry has reported that India’s merchandise exports has grown for the third consecutive month in June. It has risen by 2.55% to $35.2 billion.
Status of India’s Merchandise and Services Export
1. June 2024 Trade Performance
i) Merchandise exports grew by 2.55% to $35.2 billion.
ii) Imports increased by 5% to $56.2 billion.
iii) The trade deficit widened by 9.4% compared to the previous year.
iv) June 2024’s exports and imports were the second highest in 10 years, second only to the figures in June 2022.
v) Major growth drivers included engineering goods (10.3% increase), electronics goods (16.9% increase), drugs and pharmaceuticals (9.9% Increase), chemicals (3.3% increase), and coffee (70% increase).
vi) Petroleum exports decreased by 18.3% to $5.5 billion. and petroleum imports increased by 19.6% to $15.05 billion.
2. Record Highs in Exports
i) Total merchandise and services exports reached $200.3 billion in the first quarter of 2024-25, surpassing the previous high of $197.1 billion in 2022-23.
ii) Services exports are estimated at $30.3 billion, an 8.9% increase from the previous year.
3. Future Prospects
i) If growth trends continue, India could exceed $800 billion in total exports this year.
ii) The government is targeting six key sectors and 20 countries to boost exports.
4. Past Performance
Total exports in 2023-24 reached $778.2 billion, a 0.42% increase from the previous year. To reach the $800 billion mark in 2024-25, exports need to grow by 2.8%.
UPSC Syllabus: Indian Economy
