August merchandise exports decline 9%

Merchandise exports declined nine percent in August to $34.71 billion on drop in gems & jewellery and iron ore even as engineering goods, electronic goods, RMG of all textiles and drugs & pharmaceuticals reported growth.

"The cumulative value of merchandise exports during April-August 2024 was $178.68 billion compared to $176.67 billion during April-August 2023, a positive growth of 1.14 percent," says an official release.

Gems & jewellery exports declined 23 percent to $1.9 billion. Exports of electronic goods increased nearly eight percent to $2.33 billion and RMG shipments increased 12 percent to $1.27 billion in August, the release added.

"Top five export destinations, in terms of change in value, exhibiting positive growth in August 2024 vis a vis August 2023 are Kenya (105.72 percent), Russia (44.61 percent), The Netherlands (28.92 percent), Brazil (27.05 percent ) and U.K. (14.57 percent)."

The sharp decline in merchandise exports has come amidst continuous global economic uncertainties coupled with drop in commodity prices and logistical challenges, according to Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO).

"The urgent and immediate need of the hour is to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for at least five years, creating a predictable business environment for the exporters. Government should extend the RoDTEP Scheme, expiring on September 30, 2024 so as to enable exporters to plan ahead. Besides, data transmission challenges with regard to DGFT, ICEGATE and EDPMS may also be addressed on top priority and preferably a single agency may be given the task for up-dation and maintenance of all the three systems for uniformity and holistic approach."