India's merchandise exports surged to a record high of USD 41.68 billion in March 2024, marking a significant milestone compared to the previous fiscal year. Despite facing a slight decline of 0.67% from the previous year's tally, this achievement reflects India's resilience in the face of global challenges.
While exports showcased robust performance, imports experienced a notable decline of 6% to USD 57.3 billion during the same period, resulting in a contraction of the goods trade deficit to USD 15.6 billion, the lowest in 11 months. Notably, gold imports witnessed a sharp decline of 53.6% in March, amounting to USD 1.53 billion, contributing to the overall reduction in imports. In contrast, silver imports saw a notable surge, reaching USD 816.6 million during the same period.
The spike in exports during the last two months propelled the full-year export figure to USD 437.1 billion, slightly below the previous year's record of USD 451.1 billion. Despite prevailing global challenges such as the Ukraine war and the West Asian crisis, India's overall exports (merchandise + services) are projected to surpass the previous year's record, estimated to reach USD 776.68 billion, representing a marginal growth over FY 2022-23.
Key drivers of merchandise export growth include the electronic goods sector, which recorded a significant increase of 23.64%, reaching USD 29.12 billion. The pharmaceutical sector witnessed a notable rise in exports by 9.67% to USD 27.85 billion, while exports in the engineering goods sector grew by 2.13%, amounting to USD 109.32 billion.
Addressing challenges related to land acquisition, power tariffs, and capital availability is imperative to enhance cost competitiveness. Streamlining labor laws, improving infrastructure and logistics, and supporting MSMEs will contribute to enhancing overall competitiveness. Actively negotiating and signing trade agreements with key trading partners can facilitate market access for Indian exports.
Investing in R&D, adopting advanced technologies, and adhering to international quality standards are vital for enhancing product quality. Collaborative efforts to promote "Brand India" globally, showcasing India's cultural heritage, skilled workforce, and innovation capabilities, can attract international buyers. Encouraging multinational companies to diversify their manufacturing base away from China presents an opportunity for India to position itself as an attractive alternative.
By implementing these strategic initiatives, India can not only sustain its export growth trajectory but also surpass previous records, contributing to economic prosperity and reinforcing its position in global trade dynamics.
