The US accounts for about 18 per cent of India's merchandise exports, including electronics, pharmaceuticals, and petroleum products, among others. However, India's economy is largely driven by domestic demand, so the potential fallout from weaker US growth will likely be contained.
The weakness in oil, gems, and jewellery exports led to the contraction in India's merchandise exports in July, the market analytics and intelligence agency Crisil Ratings said in its latest report.
During the first four months of 2024-25 (April-July), India's total exports now stand at around USD 260 billion. The government has expressed optimism about reaching its full-year target of USD 800 billion
Quarterly report of Exim Bank suggests that the country's economy continues to demonstrate strong activity, driven by sustained momentum in both the manufacturing and services sectors. Additionally, expected global monetary easing and improving demand prospects from trading partners are like
However, the growth momentum slowed in June, with merchandise exports increasing by only 2.6 per cent year-on-year, down from 9.1 per cent in May. This deceleration was largely attributed to an 18.2 per cent contraction in oil exports.
India's merchandise exports surged more than 9.1 per cent in May to USD 38.1 billion, compared to last year during the same month, highlights a report by Crisil.
India's overall exports, merchandise and services combined, in the month of June were to the tune of USD 68.29 billion, a 10.2 rise on a yearly basis, commerce ministry data showed on Friday.
India's trade deficit faces limited near-term challenges from ongoing geopolitical uncertainties, though it remains an important area to monitor, says a recent outlook report by Crisil on India's trade deficit.
India's services exports, in US dollar terms, grew at a robust compound annual growth rate (CAGR) of more than 14 per cent over the last 30 years (between 1993 and 2022), significantly higher than India's merchandise export growth (10.7 per cent) as well as world services export growth (6.8
China, Russia, Iraq, UAE, Singapore are among countries where India's exports in the just-concluded financial year have risen substantially, though with a low base.
According to the latest India Development Update by the World Bank, the country emerged as one of the fastest-growing major economies in FY 2022/23, boasting a growth rate of 7.2 per cent.