Image Source: The Economic Times
India's merchandise exports have logged a value and diversification growth, as indicated by fresh trade data released on May 16. During the 2024-25 financial year, all major sectors saw their exports increase, with engineering goods, agriculture, pharma, and electronics accounting for a total of 50% plus of the overall exports. The fresh data is an indicator of the success of the government's effort to diversify the export basket and promote value-added manufacturing.
The engineering goods sector was the leading sector, with a contribution of 26.67% of the total exports valued at USD 437.42 billion during the year. Electronics exports showed the highest growth rate, increasing by 32.46% from USD 29.12 billion in 2023-24 to USD 38.58 billion in 2024-25. In setting the tone for all the others, computer hardware and peripherals in the electronics sector doubled their export value from USD 0.7 billion to USD 1.4 billion.
Agri-exports were also satisfactory, with exports of rice hitting new record levels. Pharmaceuticals and electronics contributed 6.96% and 8.82% respectively to the export basket, indicating the increasing diversification of India's export basket.
April 2025 itself had seen exports grow year-on-year by 9.1% to $38.5 billion. This had gone hand-in-hand, however, with a widening trade deficit, which also grew to $26.4 billion, the highest level in five months, as imports grew 19% to $64.9 billion. Exports of electronics in the month increased by nearly 40% to $3.7 billion, and engineering goods and petroleum products also saw good increases.
Commerce Secretary Sunil Barthwal was optimistic of maintaining this export momentum, attributing the same to the grit of Indian export industries in the face of world uncertainty. The government's targeted export strategy, with 20 target countries in its crosshairs, seems to be paying dividends, with the United States proving to be a top destination for Indian exports. Diversification of India's export basket has been considered a significant step towards positioning the nation as an even stronger contender in world trade, reducing dependence on a few products, and strengthening the economy.
Source: The Economic Times
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