India’s merchandise exports continued to grow steadily during April-October, with 21 of the top 30 sectors recording growth in value terms, driven by rising global demand for Indian products. Growth in key sectors such as pharmaceuticals, electronics and engineering products contributed to the overall gain, while traditionally strong sectors – oil, gems and jewelery – posted sharp declines amid slow economic growth in developed markets.
According to data from the Ministry of Commerce and Industry, between April and October, merchandise exports amounted to $252.28 billion in value terms, compared to $244.51 billion a year ago. India’s merchandise exports stood at $39.2 billion in October, a significant increase from $34.58 billion in September and $33.43 billion a year ago. The latest export figures underline the resilience of India’s export portfolio, even as some sectors face global challenges.
Commodities that experienced high growth during this period include tea, coffee, tobacco, spices, ready-made garments and carpets, handicrafts and plastic linoleum. Between April and October, sectors that recorded an annual decline in growth included cereals, oilmeals, oilseeds, marine products, iron ore, ceramics and glassware, gems and jewellery, and petroleum products.
key areas
According to ministry data, the value of engineering goods, which account for about 25% of the export basket, rose 9.73% year-on-year to $67.49 billion between April and October. Exports of electronic products rose 23.70% year-on-year to $19.07 billion, while shipments of medicines and pharmaceuticals rose 7.97% to $17.05 billion during the period.
Exports of organic and inorganic chemicals increased by 7.70% to $16.83 billion, handicraft exports increased by 13.9% to $1.05 billion, rice exports increased by 5.27% to $6.17 billion dollars and tobacco exports increased 38.1% to $1.19 billion. Oil exports fell 14.04% year-on-year to $40.94 billion and gem and jewelry exports fell 7.73% to $17.17 billion.
“Oil exports fell 14%, driven by disruptions to Red Sea supply routes and higher production costs, dampening European demand and hampering growth,” the economic think tank said in a note. Global Trade Research Research Initiative (GTRI). The diamond and jewelry sector declined 7.7%, pressured by increased competition from lab-grown diamonds, supply chain disruptions due to the war between Russia and Ukraine, and lower demand in the U.S. market.”
It said: “At current trends, India’s merchandise exports in fiscal 2025 could be around $435 billion. “Current trade data underlines the mixed performance of exports, requiring focus on key sectors and markets to address emerging challenges and sustain growth.” India’s top 10 raw material export destinations during April-October were the United States, United Arab Emirates, Netherlands, United Kingdom, Singapore, China, Saudi Arabia, Bangladesh, Germany and Australia.
global challenges
India’s trade dynamics will be the most affected by geopolitical tensions and economic disruptions in 2024, as global events impact supply chains and increase costs. Houthi attacks on ships in the Red Sea raised freight rates and disrupted vital trade routes, while the protracted war between Russia and Ukraine kept crude oil prices high, squeezing importers’ margins.
Additionally, the EU’s proposed carbon tax and stricter forestry regulations add complexity for exporters targeting the bloc. These challenges included a widespread slowdown in global economic growth, especially in developed economies, which severely affected demand for Indian exports. The combined effect of these factors highlighted the fragility of international trade in an increasingly unstable world.
In April, the World Trade Organization (WTO) projected that global merchandise trade would improve in 2024 after a weak 2023 marked by inflation and rising energy prices. The WTO expects trade volumes to grow by 2.6% in 2024 and 3.3% in 2025, although geopolitical risks remain.
