India's Exports Drop by 2.4% in August Amid Mixed Trade Signals

India witnessed a 2.4% decline in overall exports in August, totaling USD 65.4 billion. While merchandise exports dropped, services exports showed an increase. Despite this, the government remains optimistic about achieving the full-year export target of USD 800 billion.

India's combined exports of merchandise and services in August reached USD 65.4 billion, marking a 2.4% decline from the previous year's USD 67.0 billion, as reported by the Commerce Ministry on Tuesday. Merchandise exports fell from USD 38.28 billion to USD 34.71 billion, while services exports rose from USD 28.71 billion to USD 30.69 billion.

Combining July's figures, India's total exports for the first five months of 2024-25 have reached around USD 328.86 billion, up 5.35% year-on-year. The government maintains optimism about hitting its full-year export target of USD 800 billion.

August also saw an increase in overall imports, which rose from USD 77.39 billion to USD 80.06 billion, a 3.45% increase compared to last year. As a result, the trade deficit widened from USD 10.39 billion to USD 14.66 billion. Nevertheless, the financial year 2023-24 concluded with a record USD 778 billion in exports.

Breaking it down, services exports increased from USD 325.3 billion to USD 341.1 billion in 2023-24, while merchandise exports declined marginally from USD 451.1 billion to USD 437.1 billion. Government initiatives, such as the Production Linked Incentive (PLI) scheme, have aimed to bolster Indian manufacturing, attract investments, and integrate India into global supply chains.

The overall imports fell from USD 898.0 billion in 2022-23 to USD 853.8 billion, resulting in a notable improvement in the trade deficit from USD 121.6 billion in 2022-23 to USD 75.6 billion in 2023-24, according to ANI.

(With inputs from agencies.)