Merchandise Shipments Hit Record
Key Highlights
- Merchandise exports rose 19.63% in July.
- Exports reached USD 44.24 billion.
- Imports increased 17.52% to USD 76.22 billion.
- Trade deficit widened to USD 31.98 billion.
- Petroleum, electronics and engineering goods drove exports.
- April-July exports increased 17.04%.
New Delhi, August 13: India’s merchandise exports surged 19.63% year-on-year to USD 44.24 billion in July, marking the strongest growth in exports since June 2022, according to data released by the Commerce Ministry.
The strong export performance was driven by higher shipments of petroleum products, electronics, engineering goods and marine products.
Imports also increased during the month, rising around 17.52% year-on-year to USD 76.22 billion. Higher imports of crude oil contributed significantly to the increase, with crude oil imports rising 17.64% to USD 18.31 billion.
Crude oil accounted for around 24% of India’s total imports during July, while Brent crude prices ranged between USD 72 and USD 95 per barrel during the month.
Despite the strong export growth, the faster rise in imports pushed India’s merchandise trade deficit to a six-month high of USD 31.98 billion. The deficit stood at USD 27.88 billion in July last year and USD 30.43 billion in June.
During April-July of the current financial year, merchandise exports rose 17.04% to USD 173.78 billion, while imports climbed 19.27% to USD 292.38 billion. The merchandise trade deficit for the period widened to USD 118.60 billion from USD 96.66 billion a year earlier.
Several import categories contributed to the increase in the import bill, including raw cotton, pulses, fertilisers, coal and coke, chemicals, project goods, gold and electronics.
Electronics imports increased 46% to USD 14.4 billion, while project goods imports rose sharply to around USD 90.64 million. Gold imports increased 4% to approximately USD 4.16 billion.
Commerce Secretary Rajesh Agarwal attributed the growth in exports to stronger shipments of petroleum products, electronics, engineering goods and marine products.
Exports to several major markets, including the US, Singapore, China, South Africa, Tanzania and Malaysia, also recorded growth.
India’s exports to West Asian countries increased 8.62% to USD 5.7 billion during July, further indicating an improvement in trade flows with the region.
Services exports were estimated at USD 35.89 billion in July, while services imports stood at USD 18.94 billion.
