India’s exports of goods and services rose 5.4 percent annually to $65.47 billion in June, driven by an increase in orders which could push total exports to $800 billion in the current fiscal year ending March 2025, the trade secretary said on Monday.
Meanwhile, the country’s merchandise imports rose 5 percent to $56.18 billion in June, signaling a rise in domestic demand for industrial machinery and gold imports. Meanwhile, India’s merchandise exports rose 2.6 percent year-on-year to $35.2 billion in June.
The latest data from India’s government reveals that the goods trade deficit narrowed to $20.98 billion in June from $23.78 billion in May.
Exports to cross $800 billion
In the first quarter of financial year 2024-25, India’s total exports crossed $200 billion. If this trend continues, India’s trade secretary believes that the full year’s exports may cross $800 billion.
Notably, the growth in merchandise exports was mainly due to a rise in engineering, electronic goods and pharmaceuticals exports. Meanwhile, India’s goods and services exports rose to $778.2 billion in the last fiscal year, and the government expects total exports to reach $1 trillion by 2030.
The government also estimated services exports in June at $30.27 billion and imports at $17.29 billion, compared with $29.76 billion and $16.74 billion in May.
Read | Global air cargo demand surges 11.1 percent in April: IATA report
Supporting export growth
India’s economy, which grew 8.2 percent in the last fiscal year, at the fastest pace among major economies, is estimated to grow close to 7 percent during this fiscal year, ending March 2025.
The country has supported the manufacturing sector by offering subsidies of 4-6 percent as production-linked incentives to boost exports of electronic goods, pharmaceuticals, and other products. In addition, it is exploring new market destinations in the Middle East and Africa regions.
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