Pharma, Electronics Among India's Highest Exports During Apr-Oct

India's merchandise exports maintained a positive trajectory during the April-October period, with 21 out of the top 30 sectors registering growth in value terms, driven by rising global demand for Indian goods. Key sectors such as pharmaceuticals, electronics, and engineering goods contributed significantly to the overall increase, even as traditional strongholds like petroleum and gems and jewellery reported declines amid sluggish economic conditions in developed markets. 

Data from the Ministry of Commerce and Industry showed that merchandise exports reached USD 252.28 billion during April-October, an increase from USD 244.51 billion during the same period last year. October exports stood at USD 39.2 billion, marking a rise from USD 34.58 billion in September and USD 33.43 billion in October 2023.

Despite challenges, India's export portfolio demonstrated resilience, with notable growth observed in commodities like tea, coffee, tobacco, spices, readymade garments, carpets, handicrafts, and plastic linoleum. 

Sectoral Highlights

Engineering goods, which constitute approximately 25 per cent of India’s export basket, grew by 9.73 per cent year-on-year to USD 67.49 billion during April-October. Exports of electronic goods surged 23.70 per cent to USD 19.07 billion, while shipments of drugs and pharmaceutical products rose 7.97 per cent to USD 17.05 billion. 

Other sectors saw growth as well. Organic and inorganic chemical exports rose 7.70 per cent to USD 16.83 billion, handicrafts increased 13.9 per cent to USD 1.05 billion, rice exports grew 5.27 per cent to USD 6.17 billion, and tobacco exports experienced a robust 38.1 per cent rise to USD 1.19 billion.

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Conversely, exports of petroleum products fell 14.04 per cent to USD 40.94 billion, and gems and jewellery exports declined 7.73 per cent to USD 17.17 billion. "Petroleum exports dropped by 14 per cent, with European demand tapering due to disruptions in the Red Sea supply routes and elevated production costs, which hindered growth. The diamond and jewellery sector declined by 7.7 per cent, pressured by increased competition from lab-grown diamonds, supply chain constraints due to the Russia-Ukraine war, and diminished demand in the U.S. market," noted the Global Trade Research Initiative (GTRI).

The think tank further projected India’s merchandise exports for FY2025 at approximately USD 435 billion. "Current trade data underscores a mixed export performance, calling for focused attention on key sectors and markets to navigate emerging challenges and sustain growth," GTRI added. 

Export Destinations 

India’s top 10 merchandise export destinations during April-October included the United States, the UAE, the Netherlands, the UK, Singapore, China, Saudi Arabia, Bangladesh, Germany, and Australia.

Global Challenges 

India’s trade performance in 2024 faced headwinds from geopolitical tensions and economic disruptions that impacted supply chains and increased costs. Houthi attacks on vessels in the Red Sea disrupted critical trade routes and raised freight rates, while the Russia-Ukraine war kept crude oil prices elevated, squeezing profit margins for importers. 

Additional challenges arose from the European Union's proposed carbon tax and stringent forest regulations, which complicated exports to the bloc. A slowdown in global economic growth, particularly in developed markets, further dampened demand for Indian goods.

The World Trade Organization (WTO) had projected a recovery in global merchandise trade in 2024, following a weak 2023 characterized by inflation and high energy costs. It forecasted trade volumes to grow by 2.6 per cent in 2024 and 3.3 per cent in 2025, though geopolitical risks remain a concern.

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