India's Trade Increased by 5.45% in H1 2024, Reaching $576 Billion: NITI Aayog
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New Delhi, Dec 4 (NationPress) India's trade performance has shown stability and moderate growth during the initial quarter of the current financial year, according to a NITI Aayog Trade Watch report unveiled on Wednesday.
The report provides a comprehensive overview of India's trading status, integrating global demand-supply perspectives, performance across sectors, and insights into emerging trade prospects.
Merchandise exports displayed restrained growth, impacted by downturns in key sectors such as iron and steel, as well as natural and cultured pearls. Conversely, imports surged, driven by high-value items like aircraft, spacecraft, mineral fuels, and vegetable oils. The report indicates a promising surplus in services exports.
The report highlights that India's total trade for H1 2024 reflected a 5.45 percent increase year-on-year compared to 2023.
Merchandise imports maintained consistent growth, with Q1 FY25 exports increasing by 5.95 percent to $110 billion and imports rising by 8.40 percent to $173 billion, contributing to an expanding trade deficit.
In Q1 FY25, Indian iron and steel exports saw a significant drop of 33 percent, largely due to weak domestic demand and excess capacity in China, resulting in an oversupply of steel in global markets.
During Q1 FY25, North America represented 21 percent of India's exports, followed closely by the EU at 18.61 percent. Imports predominantly originated from Northeast Asia, West Asia (GCC), and ASEAN, accounting for 51 percent of total imports.
In Q1 FY25, export growth to FTA partners was notably robust at 12 percent, while imports from these partners rose by 10.29 percent.
The report emphasizes that the influence of international trade on developmental outcomes has increased significantly, demonstrating that cross-border trade is linked to improved living standards and poverty alleviation. India's trade environment is swiftly adapting to global challenges and opportunities. In this context, the Trade Watch Quarterly Report Q1’FY25 provides a detailed examination of India's trade performance, evaluating trade dynamics and pinpointing potential sectors and critical markets, while also assessing the repercussions of geopolitical tensions.
NITI Aayog CEO B.V.R. Subrahmanyam underscored the significance of data-driven strategies and evidence-based policymaking.
He remarked that by delivering a thorough analysis of India's trade status each quarter, this publication aims to bolster evidence-based policymaking.
"This initiative aligns with the commitment to enhancing India's trade competitiveness, aimed at harnessing India’s trade potential for Viksit Bharat (India@2047) and ensuring sustainable growth in a rapidly shifting global trade landscape," Subrahmanyam stated.
