Trade Of India: India’s total exports estimated to grow at 5.40% in June 2024

Merchandise imports during April-June 2024 were USD 172.23 Billion compared to USD 160.05 Billion during April-June 2023. Check here Trade of India 2023-24 in detail.

Table of Contents

Context: The Ministry of Commerce released quick trade estimates.

Insights of Trade Of India 2023-24

Exports: Total Exports: Total merchandise and services exports reached a record high of $200.3 billion in the Q1 of 2024-25.
- Merchandise Export: Rising by 2.55% year-on-year to $35.2 billion.
- Services Exports: Pegged at $30.3 billion for the last month, an 8.9% increase from a year ago.
- 2023-24: Total exports hit a record $778.2 billion, up 0.42% from the previous year.
Imports: Rose by 5% to $56.2 billion.
Trade Deficit: Widened by 9.4% year-on-year (YoY).

Fact

A 2.8% increase in exports is needed to reach the $800 billion target, though geopolitical risks present challenges.

June’s goods exports and imports were the second highest in 10 years, after June 2022’s $42.3 billion in exports and $64.35 billion in imports.

Key Growth Drivers

Engineering goods: +10.3%
Electronics goods: +16.9%
Drugs and pharmaceuticals: +9.9%
Chemicals: +3.3%
Coffee: +70%

Trade during June 2024

	June 2024 (USD Billion)	June 2023 (USD Billion)
Merchandise	Exports	35.20	34.32
Merchandise	Imports	56.18	53.51
Services*	Exports	30.27	27.79
Services*	Imports	17.29	15.61
Total Trade (Merchandise +Services) *	Exports	65.47	62.12
	Imports	73.47	69.12
	Trade Balance	-8.00	-7.00

Petroleum Trade

Exports: Petroleum exports fell by 18.3% to $5.5 billion in June.
Imports: Petroleum imports rose by 19.6% to $15.05 billion.
Oil Deficit: Improved from a peak deficit of $13.2 billion in May, as noted by QuantEco Research economists.

About Trade Deficit

A trade deficit occurs when the cost of a country’s imports exceeds its exports, also known as a negative balance of trade.
It is calculated by subtracting the total value of a country’s exports from the total value of its imports.

Potential Causes of Trade Deficit

Economic growth: Increased consumer wealth leads to more overseas purchases
- Strong economy attracts foreign investors
Increased government spending: Diminishes national savings
Exchange rate changes: Weak currency makes imports more expensive
- Strong currency encourages more imports
Production limitations: Some goods can’t be produced domestically
- Climate, natural resources, or cost factors
Trade policy changes: Removal of trade barriers like tariffs
- Often shifts deficit between trading partners rather than creating it