+
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

Second Mountain Tunnel Breakthrough in Palghar Advances High Speed Rail

The Mumbai-Ahmedabad high speed rail (MAHSR) project reached a milestone with the breakthrough of a mountain tunnel in Palghar, Maharashtra. Mountain tunnel MT-six measures 454 metres long and 14.4 metres wide and will accommodate up and down tracks. The breakthrough follows MT-five near Saphale on second January 2026 and the MT-six excavation was completed from both ends using the New Austrian Tunnelling Method. The ministry reported that the tunnelling was completed within 12 months. The New Austrian Tunnelling Method is favoured for its flexibility in complex geology and irregular tunnel s..

Next Story
Infrastructure Transport

Modi Government Pushes Atmanirbhar Container Drive With BCSL MoU

The Union Government advanced a plan to create an integrated, domestically anchored container ecosystem with the signing of a Memorandum of Understanding to establish the Bharat Container Shipping Line (BCSL). The MoU was signed by key agencies including the Shipping Corporation of India and Container Corporation of India alongside major port authorities and Sagarmala Finance Corporation Limited under the Ministry of Ports, Shipping and Waterways, in the presence of senior ministers. The initiative aligns with the Container Manufacturing Assistance Scheme announced in the Union Budget 2026–2..

Next Story
Infrastructure Urban

Ministry Reports Gains In Mobility For Marginalised Communities

The Ministry of Social Justice and Empowerment is implementing skill development, education and rehabilitation schemes to promote socio-economic mobility and sustainable livelihoods for marginalised and disadvantaged communities across the country. Programmes target Scheduled Castes, Other Backward Classes, Economically Weaker Sections, De-notified Tribes and Safai Karamcharis through specialised implementing corporations and empanelled training institutes. Pradhan Mantri Dakshata Aur Kushalta Sampann Hitgrahi Yojana, or PM-DAKSH, provided skill training and placement support through the Nati..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App