India's Q1 exports cross $200bn, optimistic to reach $800bn annual target

As India's exports in the first quarter of fiscal year 2024-25 (April-June) crossed the $200 billion mark, the government has expressed its optimism about reaching its full-year target of $800 billion.

"We are quite optimistic and it gives us optimism that we'd be crossing our $800 billion of trade this year," Commerce Secretary Sunil Barthwal said on Monday while releasing India's trade data for June.

India's overall exports, merchandise and services combined in the month of June were to the tune of $65.47 billion, a 5.4% rise on a yearly basis, commerce ministry data showed. Same month last year it was at $62.12 billion.

In break up, exports of merchandise goods rose from $34.32 billion to $35.20 billion, and exports of services rose from $27.79 to $30.27 billion.

In May, merchandise and services exports combined were to the tune of $68.29 billion, a 10.2% rise on a yearly basis.

The country's imports too increased year-on-year in June, data showed today. The same was the case in May.

The overall imports, both merchandise and services combined, increased from $69.12 billion to $73.47 billion, a rise of about 6.3%, in June.

In the recently concluded financial year 2023-24, India registered record exports at $778 billion. In 2022-23, the country exported goods and services combined at $776.3 billion.

In break up, services exports rose from $325.3 billion to $341.1 billion in 2023-24. Merchandise exports though marginally declined from $451.1 billion to $437.1 billion.

Among various steps the government took was to launch a Production Linked Incentive (PLI) scheme in varied sectors, including electronic goods, to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports. These seemed to have reaped dividends.

China, Russia, Iraq, UAE, and Singapore were among the countries where India's exports in the just-concluded financial year have risen substantially, though with a low base. The other countries in the Top 10 list are the UK, Australia, Saudi Arabia, the Netherlands, and South Africa.

Overall imports, they declined from $898.0 billion in 2022-23 to $853.8 billion. Both merchandise and services exports declined during the financial year.

Overall trade deficit significantly improved from $121.6 billion in 2022-23 to $75.6 billion in 2023-24.