Engineering leads India’s Export Growth in Fastest Jump in 20 months

Engineering leads India’s Export Growth in Fastest Jump in 20 months

The government is sure that prior year’s levels will be scaled.

India’s goods exports expand at the fastest rate in 20 months, jumping 11.9 percent to $14.4 billion, the biggest value of shipment since last March. Imports increased 12.1 percent to $60 billion, resulting in a trade deficit of $18.7 billion.

“If you look at the 11-month period of the fiscal year, this is the largest export growth that we have accomplished, both in merchandise and overall. “This is very encouraging,” Commerce Secretary Sunil Barthwal told reporters. The figures have also given the government confidence that last year’s level will be increased.
Economists also sounded hopeful.” A better-than-expected performance in goods exports caught us off guard. This suggests that the disruptions to the Red Sea trade route, while requiring some rerouting of Indian exports, have not materially altered the trend in exports,” according to a note from Barclays.

Services Exports reached a new high of $32 billion in February, up 17.3% over the previous year, while the trade surplus reached a monthly high of $16.7 billion.
Engineering goods, the country’s largest export item, were a key driver in February, up 15.9% to $9.9 billion.”In recent months, there has been a revival in various commodity groups, particularly iron and steel.” Also, demand from diverse market such as Australia,UAE and Russia has been pretty robust and the trend is predicted to continue. “We are optimistic that FTAs with the UK, Oman, and the EU will be signed sooner rather than later,” said EEPC India chairman Arun Kumar Garodia.

Electronic goods, primarily mobile phones, saw a 55% increase of about $3 billion. While sectors such as gems and jewellery were hurt by sluggish demand overseas petroleum (5% increase to $8.2 billion) and readymade textiles (4.9% increase to $1.4 billion), they contributed to the overall increase.
“Such an impressive increase in overall exports growth, find the Red Sea crisis tight monetary stands by the developed World and falling commodity prices posing challenge not only portrays the dedication and commitment of the sector but also the resilience of the exporting community, who have continuously been braving such odds since Russia Ukraine war,” Aswani Kumar, the president of the FIEO, said.

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