India’s commodity exports dip from April to July 2024, with major sectors like rice, gems, and petroleum products facing a downturn.
India’s commodity exports experienced a steady decline from April to July 2024, with 12 out of 30 major export items witnessing further drops in July, as per the latest data from the Ministry of Commerce and Industry.
Key sectors such as rice, marine products, gems & jewellery, and petroleum products saw significant reductions in export value, contributing to a widening trade deficit. In July alone, exports of coffee, rice, cashews, and oil seeds fell by 0.98 percent to 25.51 percent compared to the same period last year. However, electronics, engineering, and pharmaceuticals exports saw annual increases of 37.31 percent, 3.66 percent, and 8.36 percent respectively, indicating a shift in export dynamics.
The overall merchandise trade deficit expanded to $23.5 billion in July, up from $20.98 billion in June and $19 billion in July 2023. Experts attribute the export slump to global economic weakness, with concerns about the impact on India’s macro-economy and currency. Analysts from Bank of Baroda expect a possible correction in the trade deficit, anticipating a revival in global demand supported by easier monetary conditions.
