Exports Drop, Trade Deficit Widens
ECONOMY & POLICY

Exports Drop, Trade Deficit Widens

India's export performance hit a significant setback in April 2024, plummeting to its lowest level in five months. This decline exacerbated the trade deficit, which expanded to a four-month high, reflecting mounting economic pressures. According to the latest data released by the Commerce Ministry, merchandise exports fell by 12.7% year-on-year, reaching $33.5 billion. This sharp drop was driven by declines in key sectors such as engineering goods, textiles, and chemicals.

Simultaneously, imports witnessed a 2% decrease, totalling $49.9 billion. Despite the drop in imports, the trade deficit widened to $16.4 billion, the highest since December 2023. This growing deficit underscores persistent challenges in balancing the country?s trade dynamics.

Analysts attribute the export downturn to several factors, including subdued global demand, geopolitical tensions, and supply chain disruptions. These issues have compounded the difficulties faced by Indian exporters, who are also grappling with fluctuating commodity prices and increasing competition from other emerging markets.

The engineering goods sector, a significant contributor to India?s export basket, saw a 7.2% decline. Similarly, textile exports fell by 15%, while chemical exports dropped by 10.5%. These declines indicate broader challenges within these industries, which are struggling to maintain their competitive edge amid global uncertainties.

On the import front, the reduction was less pronounced but notable in segments such as electronic goods and machinery. The decrease in import volume is partly attributed to lower domestic demand and efforts to promote self-reliance through local manufacturing initiatives.

The widening trade deficit has raised concerns among policymakers, who are closely monitoring these trends. The government is expected to introduce measures aimed at boosting export competitiveness and diversifying the export base. Efforts may include enhancing trade agreements, providing incentives for high-potential sectors, and addressing logistical bottlenecks.

In summary, the sharp drop in exports and the widening trade deficit in April 2024 highlight the need for strategic interventions to stabilise India's trade balance and strengthen the resilience of its export-oriented industries.

India's export performance hit a significant setback in April 2024, plummeting to its lowest level in five months. This decline exacerbated the trade deficit, which expanded to a four-month high, reflecting mounting economic pressures. According to the latest data released by the Commerce Ministry, merchandise exports fell by 12.7% year-on-year, reaching $33.5 billion. This sharp drop was driven by declines in key sectors such as engineering goods, textiles, and chemicals. Simultaneously, imports witnessed a 2% decrease, totalling $49.9 billion. Despite the drop in imports, the trade deficit widened to $16.4 billion, the highest since December 2023. This growing deficit underscores persistent challenges in balancing the country?s trade dynamics. Analysts attribute the export downturn to several factors, including subdued global demand, geopolitical tensions, and supply chain disruptions. These issues have compounded the difficulties faced by Indian exporters, who are also grappling with fluctuating commodity prices and increasing competition from other emerging markets. The engineering goods sector, a significant contributor to India?s export basket, saw a 7.2% decline. Similarly, textile exports fell by 15%, while chemical exports dropped by 10.5%. These declines indicate broader challenges within these industries, which are struggling to maintain their competitive edge amid global uncertainties. On the import front, the reduction was less pronounced but notable in segments such as electronic goods and machinery. The decrease in import volume is partly attributed to lower domestic demand and efforts to promote self-reliance through local manufacturing initiatives. The widening trade deficit has raised concerns among policymakers, who are closely monitoring these trends. The government is expected to introduce measures aimed at boosting export competitiveness and diversifying the export base. Efforts may include enhancing trade agreements, providing incentives for high-potential sectors, and addressing logistical bottlenecks. In summary, the sharp drop in exports and the widening trade deficit in April 2024 highlight the need for strategic interventions to stabilise India's trade balance and strengthen the resilience of its export-oriented industries.

Next Story
Infrastructure Transport

NHAI to Build 6-Lane Agra-Gwalior Expressway on BOT (Toll) Mode

To enhance connectivity between the tourism hubs of Agra and Gwalior, National Highways Authority of India (NHAI) will develop 88 km long 6-lane access controlled Agra-Gwalior Greenfield Expressway (NH-719D). NHAI, today signed a concession agreement for the implementation of project with GR Infraprojects, in presence of NHAI Chairman, Santosh Kumar Yadav and senior officials of NHAI and the Concessionaire. The Agra-Gwalior Greenfield Expressway will start from Deori village in Agra and terminate at Susera village in Gwalior. The project shall be developed at a Total Capital Cost of Rs 46.13 b..

Next Story
Infrastructure Transport

Cabinet Nods 166.8-km NH-6 Greenfield Corridor on HAM Mode

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved the proposal for Development, Maintenance and Management of 4-lane Greenfield Access Controlled 166.80 km of National Highway No. 06 from Mawlyngkhung (near Shillong) in Meghalaya to Panchgram (near Silchar) in Assam on Hybrid Annuity Mode as an access controlled greenfield High-Speed Corridor at a total capital cost of Rs 228.64 billion. The project length of 166.80 km lies in Meghalaya (144.80 km) and Assam (22.00 km). The proposed Greenfield high-speed corridor will improve the service level ..

Next Story
Infrastructure Urban

Commercial Ops Begin at Multi-Modal Logistics Park in Nagpur

Under the PM Gati Shakti initiative of Prime Minister with the aim to provide seamless and efficient connectivity for the movement of people, goods and services across various modes of transport, thereby enhancing last-mile connectivity and reducing travel time, and under the guidance of Union Minister of Road Transport and Highways, Nitin Gadkari, the Multi Modal Logistics Park, Nagpur (MMLP Nagpur) at Sindi, near Wardha commenced its commercial operations with a goal to establish a faster link. The MMLP Nagpur established by National Highway Logistics Management (NHLML), a 100 per cent own..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?