SURGE IN EXPORTS TO EU, PUSH INTO AFRICA, GCC SIGNAL INDIA'S SHIFT

India’s merchandise exports seem to have weathered the headwinds quite well so far amid heightened geopolitical tensions that have rendered the global environment highly uncertain but while support continues from some of its traditional large export partners such as Europe and the Gulf Cooperation Council (GCC) – as per destination-wise trade data of the Government and industry -- shipments to the US -- India’s largest exporting destination – declined marginally in fiscal 2024 which is prompting New Delhi to scout for new partners across untapped geographies.

- NIVEDITA MUKHERJEE

On-year export growth entered the positive zone in August 2023 for the first time in many months and has since displayed healthy momentum. After an average 13.1 per cent on-year contraction during AprilJuly 2023, exports logged 2.2 per cent growth over August 2023-March 2024. Indeed, export growth in the last quarter of fiscal 2024 was faster at 4.5 per cent. The performance was largely in sync with global trade, according to CRISIL Market Intelligence and Analytics. According to latest data from the United Nations Conference on Trade and Development, global merchandise exports declined 4.6 per cent in 2023, similar to India’s 4.7 per cent decline during the period, thereby keeping India’s share in world exports stable at 1.8 per cent. India’s export performance was, in fact, better than developing Asia as a whole, which saw merchandise exports decline a higher 6.8 per cent in 2023, .