In February 2024, India witnessed a significant upswing in its export numbers, marking a notable milestone in its economic trajectory. With exports totaling $73.55 billion, the nation experienced a remarkable growth of 14.20 per cent compared to the previous year. Conversely, imports stood at $75.50 billion during the same period, showcasing a parallel upward trend in trade activity.
Merchandise Exports Reach Fiscal High
A standout feature of February 2024’s export performance is the attainment of a fiscal high in merchandise exports, amounting to $41.40 billion. This surge is attributed to the stellar performance of various sectors including engineering, chemicals, pharmaceuticals, petroleum, and agricultural products.
The main drivers of merchandise export growth in February 2024 include:
- Engineering Goods: Exports in February 2024 recorded an increase of 15.9 per cent to $9.94 billion over $8.58 billion in February 2023.
- Electronic Goods: Exports registered a staggering growth of 54.81 per cent, totaling $3.00 billion in February 2024 compared to $1.94 billion in February 2023.
- Organic and Inorganic Chemicals: Exports increased by 33.04 per cent from $2.22 billion in February 2023 to $2.95 billion in February 2024.
- Drugs and Pharmaceutical Products: Exports in February 2024 stood at $2.51 billion, reflecting an increase of 22.24 per cent over $2.06 billion in February 2023.
- Petroleum Products: Exports in February 2024 registered a growth of 5.08 per cent, reaching $8.24 billion from $7.84 billion in February 2023.
Moreover, exports of agricultural products including tobacco (58.24%), meat, dairy & poultry products (37.83%), oilseeds (37.71%), cereal preparations & miscellaneous processed items (17.69%), spices (14.84%), fruits & vegetables (12.72%), and rice (1.81%) continued to grow in February 2024, contributing significantly to India’s export landscape.
Trade Deficit Narrows, Signaling Economic Resilience
Against the backdrop of escalating exports, India’s trade deficit witnessed a substantial reduction, marking a notable achievement for the nation’s economic landscape. In the April-February period of 2023-24, the overall trade deficit contracted by 37.80 per cent to $72.24 billion, significantly improving upon the figure of $116.13 billion recorded during the same period in the previous fiscal year.
Moreover, the merchandise trade deficit demonstrated a marked improvement, shrinking by 8.43 per cent from $245.94 billion in April-February 2022-23 to $225.20 billion in April-February 2023-24. This reduction underscores India’s growing capacity to balance its trade dynamics and mitigate external vulnerabilities.
Conclusion
India’s robust export performance in February 2024 underscores the nation’s resilience and adaptability in navigating the complexities of global trade. Bolstered by the stellar performance of key sectors such as engineering, chemicals, pharmaceuticals, petroleum, and agriculture, India has demonstrated its prowess as a formidable player in the international market. Moreover, the significant narrowing of the trade deficit reflects India’s concerted efforts towards fostering sustainable economic growth and stability. As India continues to harness its inherent strengths and capitalize on emerging opportunities, the trajectory of its export sector remains poised for further expansion and consolidation on the global stage.