India's Export Surge: Economic Trends in October 2024

Export Performance and Growth:

• Merchandise exports rose 17.26% to $39.2 billion (28-month high)
• Non-oil exports grew 27.7%, reaching $31.36 billion

Key performing sectors:

• • Engineering goods: 39.4% growth
  • Electronics: 45.7% surge
  • Chemicals: 27.35% increase
  • Readymade garments: 35.1% rise
  • Rice exports: Impressive 85.8% jump
• Driven by pre-Christmas inventory buildup in Western markets
• Projected total exports above $800 billion for fiscal year 2024-25

Import Dynamics and Trade Deficit:

• Total imports increased 3.88% to $66.34 billion

Significant import increases:

• • Crude oil imports: $18.2 billion
  • Gold imports: $7.13 billion
  • Electronic goods
  • Vegetable oil
  • Non-ferrous metals
• Merchandise trade deficit expanded to $27.14 billion
• Cumulative trade deficit from April-October: $164.65 billion

Factors contributing to import surge:

• • Festival season demand
  • Global supply chain dynamics
  • Geopolitical tensions affecting trade routes

Sectoral and Strategic Insights:

• Services exports grew 21.3% to $34 billion

Smartphone exports hit record $2 billion in October

• • First seven months of fiscal year: $10.6 billion exports
  • 37% year-on-year surge
  • Apple's largest quarterly shipments: 4 million units

Government focus on strategic sectors:

• • Electronics
  • Engineering
  • Pharmaceuticals
  • Production-Linked Incentive (PLI) scheme support

Challenges:

• • Geopolitical tensions
  • Disrupted traditional trade routes
  • Global economic uncertainties