India's Merchandise Exports Soar to Three-Month High Amid Strong Global Demand

A surprise jump in shipments to the US despite high tariffs pulled India’s merchandise exports to a three month high of $ 38.13 billion in November, a growth of 19.37% on year. The growth wasthe highest in three years and coupled with a 1.88% decline in imports to $ 62.66 billion which brought down the trade deficit to a five month low of $ 24.53 billion. After contracting for the two straight months after the imposition of additional duties in August, the exports to the US grew 22% year-on-year to touch $ 6.98 billion. Other geographies that contributed to the November performance was China where the exports were up 90% to $ 2.20 billion. In April-November exports to the US have grown 11.38% on year to $ 59.04 billion while to China the growth has been 32.83% to $ 12.22 billion. Growth was also witnessed in markets of Spain, United Arab Emirates (UAE) and Tanzania. The decline in imports in November was due to sharp fall in gold imports both year-on-year and month-on-month. Gold imports were down 59.15% on year in November to $ 4.0 billion. Another commodity that saw fall in imports was crude oil where the decline was 11.27 % on year to $ 14.11 billion. The November trade performance has offset the losses on the goods trade front in October, commerce secretary Rajesh Agrawal told reporters. In October exports had declined 11.80%, imports were up 16.68% and the trade deficit was $ 41.68 billion, a record. Only five out of the 30 broad commodity groups saw a decline in exports in November. The sectors driving exports during the month were engineering, electronics, petroleum, pharma, chemicals and gems and jewellery. Engineering exports that account for more than a quarter of total shipments were back to growth after contraction in October, recording an expansion of 23.76% to $ 11.0 billion. Electronics exports grew 38.96% to $ 4.81 billion, petroleum exports were up 11.6% to $ 3.93 billion. Gems and Jewellery that have seen a decline during most of the months of the financial year, grew 27.80 % to $ 2.64 billion. Pharma exports were up 20.91% to $ 2.6 billion while chemical exports were up 18.49% to $ 2.34 billion. Readymade garment exports were up 11.27% to $ 1.24 billion while marine product exports were 13.54% to $ 877 million. “Diversification of export markets, along with the continued resilience of several key sectors, has played a crucial role in supporting export growth. With sustained policy support, enhanced logistics efficiency, and access to competitive export financing, India’s exports are well-positioned to maintain this positive trajectory in the coming months,” president of Federation of Indian Export Organisations S C Ralhan said. To help exporters the commerce ministry is finalising the detailed guidelines of the Rs 25,060-crore export promotion mission, and a few components of it will be rolled out this week itself, the commerce secretary said. He said though this help may not be enough to deal with the steep 50% tariff imposed by the US, it will definitely bring relief for exporters in areas of liquidity. Services exports in November grew 1.55% on year to $ 35.86 billion while imports were up 4,11% to $ 17.96 billion. In April-November goods exports grew 2.62% to $ 292.07 billion while imports were up 5.59% to $ 515.21 billion. Overall exports in April-November were up 5.43% to $ 562.13 billion and imports were up 5.00% to $ 651.13 billion.