India’s merchandise exports rise to $35.2bn in June: Commerce ministry

India’s merchandise exports increased to $35.2 billion in June 2024 from $34.32 billion in the same period last year, reveals the latest commerce ministry data released on Monday.

At the same time, merchandise imports have increased to $56.18 billion in the month of June, so the overall trade deficit of the nation stands at $20.98 billion during the month, compared with $23.78 billion in May this year.

The deficit in June is an improvement on the $21.5 billion deficit figure that a Reuters poll of experts had recently estimated. The June 2024 growth in merchandise exports has primarily been boosted by a surge in out-bound trade. Chief among exports that boosted the growth are commercial vehicles and engineering supplies.

The commerce ministry report states that according to the government’s projection, services exports should touch $30.27 billion in June compared with $29.76 billion in May. Services imports would be around $17.29 billion compared with $16.74 billion in the previous month.

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2024 for FY25 on July 23 and exporters hope for tax incentives to push exports, especially of digital products, pharmaceuticals and farm produce. The step would help them keep up the current upsurge in exports.

The current upsurge should see exports in the goods and services sector scale the figure of $800 billion in the current fiscal year 2024-’25, or FY25, which ends on March 31 next year, according to the projection of the commerce ministry. This will mark a rise from $778.2 billion in FY24.

India is currently the third largest economy in Asia, growing at a rate of 8.2 per cent in FY24. The rate is the most rapid among the major economies and the nation is estimated to continue maintaining a growth rate of nearly 7 per cent in FY25.