FY24 Overall Exports Gain Marginally As Electronics, Engineering Goods Register Highs

In a year marked by global trade disruptions, India’s overall exports in FY24 are estimated to reach $776.68 billion, marginally improving the levels seen in FY23 at $776.40 million, led by robust growth in electronics, engineering, pharmaceuticals, and iron ore, among other segments.

Global headwinds such as the Red Sea crisis, the continuing war in Ukraine and climate-induced droughts along the Panama Canal have restricted maritime travel, impacting India's merchandise exports,whicht fell by 3.11%, dropping from $451.07 billion in 2023 to $437.06 billion.

However, there was a 4.39% growth in services exports, which rose from $325.3 billion to $339.6 billion, boosting the overall export figure.

"This year was a difficult year from a trade perspective," Commerce Secretary Sunil Barthwal told the media on Monday. "In terms of services, this is the highest ever-overall figure we have seen for the country."

The World Trade Organisation has predicted that global merchandise trade volume will rebound to 2.6% in 2024 and 3.3% in 2025, from 1.2% in 2023.

Barthwal noted that India is "looking at an upcycle in growth figures" just as global trade looks up. "We are internationally aligned," he said.

Electronics exports rose 23.64% between FY23 and FY24, standing out as one of India's top export increases.

Global Trade Research Initiative co-founder Ajay Srivastava said that electronics exports, where India has traditionally been weaker, grew due to government initiatives like the Production-Linked Incentive scheme and other 'Make-in-India' efforts. "Smartphone exports are expected to rise by 30% to over $15 billion," said Srivastava, who is also a former Indian Trade Services official.

Traditionally, labour-intensive sectors like marine products, gems and jewellery, textiles, apparel, and leather experienced a decline, reflecting a need to revitalise them, said Srivastava.