Exports up for 3rd month, increases 6% in Q1FY2025

India's merchandise exports increased six percent to $109.96 billion in the first quarter of the current financial year (April-June 2024) compared to $103.89 billion in the same period last year.

Merchandise exports increased three percent in June to $35.20 billion compared to $34.32 Billion in June 2023. "Major drivers of merchandise exports growth in June include engineering goods, electronic goods, drugs & pharmaceuticals, coffee and organic & inorganic chemicals, " says an official release from the ministry of commerce and industry.

The third consecutive increase in merchandise exports shows the resilience of the sector, says Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO). "Had it not been for the logistics disruptions such as lack of container availability, shipping space, irregular shipping schedule and ships skipping Indian ports, the exports would have recorded close to double-digit growth in June 2024."

Kumar adds that he is optimistic of better growth numbers with improved demand coming in from the European Union, U.K., West Asia and the U.S. in months to come, which will not only further give a boost to the overall order bookings but also to the labour-intensive sectors of exports.

"The need of the hour is to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for five years besides addressing the Middle East geopolitical situation, Red Sea challenges by ensuring availability of containers, marine insurance and rationale increase in freight charges. The sector also needs easy & low cost of credit, marketing support and conclusion of some of the key FTAs with UK, Peru and Oman soon."