Buoyant orders see Indian merchandise exports increase 9% in May

India’s total exports (merchandise and services combined) for May 2024 is estimated at $68.29 billion, up 10 percent compared to $61.95 billion in May 2023.

"Total imports (merchandise and services combined) for May 2024 is estimated at $79.20 Billion, registering a positive growth of 7.95 percent vis-à-vis May 2023," says an official release.

While merchandise exports during May 2024 increased nine percent to $38.13 billion, imports increased to eight percent to $61.91 billion.

 India’s total exports during April-May2024 is estimated at $133.61 billion, an increase of 9.21 percent YoY. Total imports during April-May 2024 is estimated at $149.92 billion, up 10 percent.

Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO) says: "Continuing with positive growth momentum for the second month in a row during FY2024-25 on the back of buoyant order bookings goes to show the resilience of the exports sector and the Indian exporting community.

"The ongoing Russia-Ukraine war, coupled with various major geo-political tensions including the Red Sea crisis and Israel-Hamas conflict, has made the international trade scenario tougher for the Indian exporters. We expect exports to show better growth numbers with improved demand coming in from the European Union, U.K., West Asia and the U.S., which has given a boost to the order bookings by over 10 percent and has come as a sign of recovery for labour-intensive sectors of exports."

Major drivers of merchandise exports growth in May 2024 include electronic goods, petroleum products, engineering goods, drugs & pharmaceuticals, RMG of all textiles and plastic & linoleum, the release added.

*Electronic goods exports increase 23 percent to $2.97 billion

*Petroleum products exports increase 16 percent to $6.78 billion

*Drugs and pharmaceuticals exports increase 10 percent to $2.30 billion; and

*Engineering goods exports increase seven percent to $9.99 billion

"Our exports in the top ten markets (U.S., UAE, Netherland, U.K., China, Singapore, Saudi Arabia, Bangladesh, Germany and France) were positive and many of them recorded a healthy double-digit growth," says Kumar.

Kumar reiterated that the need of the hour is to take steps on the liquidity front with deeper interest subvention support and continuation of interest equalisation scheme besides addressing the Middle East geopolitical situation, Red Sea crisis challenges by ensuring availability of marine insurance and rational increase in freight charges. "The sector also needs easy & low cost of credit, marketing support and conclusion of some of the key FTAs with U.K., Peru and Oman soon."