India’s merchandise export dip 9% to $34 billion; Imports from China remain grew 15%

The commerce ministry, in its latest data has shown that India's merchandise export dipped 9.32 % to $34.71 billion in August 2024 from $38.28 billion in the year-ago month due to global economic uncertainties. However, imports increased by 3.3 % to $64.36 billion in August as compared to $62.3 billion a year ago, due to a significant jump in the inbound shipments of gold and silver. The trade deficit, or the gap between imports and exports, widened to $29.65 billion in August from $24.2 billion in the same month last year.

According to the data, merchandise exports during April-August 2024 were $178.68 billion as compared to $176.67 billion during April-August 2023. Merchandise imports during April-August 2024 were $295.32 billion compared to $275.83 billion during April-August 2023. Merchandise trade deficit during April-August 2024 was $116.64 billion compared to $99.16 billion during April-August 2023.

It further stated that non-petroleum and non-gems & jewellery exports in August 2024 were $26.76 billion compared to $26.14 billion in August 2023. Non-petroleum and non-gems & jewellery exports in April-August 2024 were $135.75 billion, compared to $128.95 billion in April-August 2023. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in August 2024 were $40.65 billion compared to $38.88 billion in August 2023. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in April-August 2024 were $186.25 billion, compared to $177.13 billion in April-August 2023.

Exports to China dip; Imports remain resiliant

The commerce ministry in its latest data has showed that India's exports to China dipped by 22.44 % to $1 billion, while imports rose by 15.55 % to $10.8 billion in August. Cumulatively, in the April-August period this fiscal, exports to the neighbouring country dipped by 8.3 % to $5.8 billion while imports grew 10.96 % to $46.65 billion, leaving a trade deficit of $35.85 billion.

The country's exports to the US, the UAE, Singapore, Bangladesh, Australia, South Africa, France, Nepal, Belgium, and Turkey also declined during the month under review. Also, imports from the UAE, Switzerland, Korea, Japan, Thailand, Vietnam and Taiwan, recorded growth. According to the data, India's exports to the US declined 6.29 % to $6.55 billion while imports from that country dipped by 6.3 % to $3.82 billion in August. Cumulatively, during the April-August 2024-25, exports to the US increased 5.72 % to $34 billion, while imports grew 3.72 % to $19 billion, leaving a trade surplus of $15 billion.

Similarly, the country's imports from Russia dipped by about 40 % to $2.57 billion in August. During April-August 2024-25, imports grew by 6.39 % to $27.35 billion, due to crude oil imports. In 2023-24, the US was India's largest trading partner, followed by China. China was India's top trading partner from 2013-14 till 2017-18 and in 2020-21. Before China, the UAE was the country's largest trading partner. The US was also the largest partner in 2021-22 and 2022-23.