Merchandise exports down 5% in Nov on global worries

Merchandise exports declined 4.85 percent to $32.11 billion for November 2024 compared to $33.75 billion in November 2023 on the back of continuing global economic uncertainties.

Major drivers of merchandise exports growth in November 2024 includes electronic goods, engineering goods, rice, marine products and RMG of all textiles, says an official release from the ministry of commerce.

"Rice exports increased by 95.18 percent from $0.59 billion in November 2023 to $1.14 billion in November 2024. RMG of all textiles exports increased by 9.81 percent from $1.02 billion in November 2023 to $1.12 Billion in November 2024."

Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO) says: "The ongoing international trade disruptions along with the volatility in crude and metal prices have also played a key role in the declining value of exports to some extent. The rising tensions between Israel-Iran has continuously led to logistical challenges with regard to international trade getting impacted as most of our trade to Europe, Africa, CIS and the Gulf region is happening through the Red Sea route or the Gulf region prompting buyers to have little large inventories."

The challenges with regard to trade finance still remains the key for the MSMEs as it is really impacting the competitiveness of Indian products in the global markets, Kumar added.

Cumulative value of merchandise exports during April-November 2024 was $284.31 billion compared to $278.26 billion during April-November 2023, an increase of 2.17 percent.