Merchandise exports down 11% in Feb on weak global demand
Cumulative merchandise exports during April-February was $395.63 billion compared to $395.38 billion last year.;
Merchandise exports declined 11 percent to $36.91 billion in February compared to $41.41 billion in February 2024 on subdued demand.
Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO), emphasised that the dip is primarily due to subdued global demand and ongoing challenges faced by key export sectors including the impact of the global tariff war.
Imports saw a more significant drop, down 16 percent, to $50.96 billion. "This reduction in imports indicates a positive trend towards manufacturing and shift in domestic demand, suggesting that Indian consumers and industries are becoming more cautious on imported goods," Kumar added.
While exports have faced challenges, particularly due to the global tariff war, the sharp decline in imports signals a reduction in demand for foreign goods, presenting opportunities for domestic industries to grow.
Cumulative merchandise exports during April-February 2024-25 increased marginally to $395.63 billion compared to $395.38 billion during April-February 2023-24, says an official release.
"Cumulative exports (merchandise & services) during April-February 2024-25 is estimated at $750.53 billion as compared to $706.43 billion in April-February 2023-24, an increase of 6.24% percent."
FIEO has urged the government to introduce targeted support aimed at boosting exports. "This includes expanding the scope of the production-linked incentive (PLI) scheme and improving access to competitive financing for exporters," Kumar said.
He also highlighted the importance of resolving non-tariff barriers and enhancing market access as well as strengthening India’s integration into global value chains to ensure sustained export growth.