India’s goods exports fell 9.3% in August 2024 to $34.71 billion compared to $38.28 billion during the same month the previous year. Imports rose 3.2% to $64.36 billion as compared to $62.3 billion during the same comparable period.
The dip in exports was primarily due to the decline in the value of petroleum products and gem and jewellery exports. While petroleum product exports fell 37.56% to $5.96 billion in August 2024 as compared to $9.54 billion in August 2023, the decline in gems and jewellery exports was 23.13% - from $2.6 billion in August last year to $1.99 billion in August 2024.
The non-petroleum, non gem and jewellery exports stood at $26.76 billion in August 2024, marginally higher than $26.14 billion during the same month last year. Export of coffee (69.55% growth), tobacco (34.45%), spices (19.13%), tea (14.96%), readymade garments(11.88%), plastic & linoleum (11.08%), organic & inorganic chemicals (8.32%), oil seeds (8.09%), electronic goods (7.85%), drugs & pharmaceuticals (4.67%), engineering goods (4.36%), etc were among the items that showed positive growth during August 2024 over the corresponding month of last year.
The increase in imports was primarily due to a 103.71% increase in gold imports to $10 billion in August 2024 as compared to $4.9 billion during the corresponding month of last year. Import of silver increased 727.06% to touch $1.3 billion in August 2024 as compared to $159 million during the same month last year. Electronic goods (12.78%), machinery (10.21%), machine tools (15.66%), non ferrous metals (22.21%), organic and inorganic chemicals (21.22%) were among the other items that showed an increase in import in August 2024.
Federation of Indian Export Organisations (FIEO) attributed the decline in merchandise exports to global economic uncertainties coupled with drop in commodity prices and logistical challenges. “Ongoing international trade disruptions along with drop in crude and metal prices have played a key role in bringing down the value of exports. Some of the exporters have diverted to the domestic market as profitability in exports have taken a hit with a sharp rise in international freight (both ship and air). Had it not been these trade disruptions led by logistical challenges such as lack of shipping space, irregular shipping schedule, ships skipping Indian ports and declining commodity prices, the merchandise exports would have recorded positive growth in exports," says Ashwani Kumar, president, FIEO.
