India’s July exports up 2.8% at USD 62.4 billion, trade deficit widens to USD 9.6 billion

India’s overall exports, merchandise and services combined, in July were to the tune of USD 62.42 billion, a 2.81 rise on a yearly basis, Commerce Ministry data showed on Wednesday. Same month last year it was USD 60.71 billion.

Exports of merchandise goods declined from USD 34.49 billion to USD 33.98 billion and exports of services rose from USD 26.22 to USD 28.43 billion during the month.

India’s overall exports, merchandise, and services combined in June were to the tune of USD 65.47 billion.

During the first four months of 2024-25 (April-July), India’s total exports now stand at around USD 260 billion. The government has expressed optimism about reaching its full-year target of USD 800 billion.

The country’s imports too increased year-on-year in July, data showed today. The same was the case in June.

The overall imports, both merchandise and services combined, increased from USD 67.23 billion to USD 72.03 billion, a rise of about 7.13 per cent, in July.

Coming to trade deficit, meaning the difference between the exports and the imports, it widened from 6.5 per cent to 9.61 per cent in July.

In the recently concluded financial year 2023-24, India registered record exports at USD 778 billion. In 2022-23, the country exported goods and services combined at USD 776.3 billion.

In break up, services exports rose from USD 325.3 billion to USD 341.1 billion in 2023-24. Merchandise exports though marginally declined from USD 451.1 billion to USD 437.1 billion.

Among various steps the government took was to launch a Production Linked Incentive (PLI) scheme in varied sectors, including electronic goods, to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports. These seemed to have reaped dividends.

Overall imports declined from USD 898.0 billion in 2022-23 to USD 853.8 billion. Both merchandise and services exports declined during the financial year.

Overall trade deficit significantly improved from USD 121.6 billion in 2022-23 to USD 75.6 billion in 2023-24.