Exports of key commodities fall in April-July amid rising trade deficit

  • Exports of the top 30 commodities stood at $31.83 billion in July, down from $32.63 billion in the same month last year, commerce ministry data showed.

Rhik Kundu
Published19 Aug 2024, 10:22 AM IST
The merchandise trade deficit stood at $23.5 billion in July, larger than the $20.98 billion deficit recorded in the previous month and $19 billion in July 2023. Photo: Sanjit Das/Bloomberg
The merchandise trade deficit stood at $23.5 billion in July, larger than the $20.98 billion deficit recorded in the previous month and $19 billion in July 2023. Photo: Sanjit Das/Bloomberg

New Delhi: India's commodities exports, including marine products, rice, gems & jewellery, and petroleum products, declined steadily between April and July 2024, with 12 of the 30 major export items dipping further in July, according to the latest data from the ministry of commerce and industry.

During July, the export of commodities such as coffee (-0.98%), rice (-15.30%), cereals (-81.43%), cashews (-25.51%), oil seeds (-0.01%), marine products (-4.58%), ceramic products & glassware (-21.13%), gems & jewellery (-20.36%), organic & inorganic chemicals (-12.03%), cotton yarn & handloom products (-4.13%), jute (-14.30%) and petroleum products (-22.15%) declined in value terms from the same month last year.

However, the export of commodities such as electronics (37.31%), engineering (3.66%) and pharmaceutical products (8.36%) rose annually during July, edging out traditional export shipments of textiles, chemicals and jewellery and signalling a crucial shift in export trends.

Also read | Mango wars: China grown Indian mango varieties eat into India’s exports

Nine of the 30 major export items dipped in value terms annually during June, while 10 of the 30 dipped in May and 17 in April. During April-July, 12 of the 30 major export items fell in value terms from the same period last year. These included rice (-4.29%), cereals (77.18%), cashew (-19.14%), oil meals (-16.48%), oil seeds (-8.61%), marine products (-7.20%), iron-ore (-15.47%), mica, coal & other ores (-1.09%), leather & leather products (-2.05%), ceramic products & glassware (-7.82%), gems & jewellery (-7.45%), and jute (-12.50%).

Exports of the top 30 commodities stood at $31.83 billion in July, down from $32.63 billion in July 2023, the commerce ministry data showed. During April-July, exports of the top 30 commodities stood at $135.34 billion, up from $130.77 billion a year ago.

Also read | From Dubai to Tokyo: Indian spirits take flight, ticking global palates with single malts and more

The merchandise trade deficit – the difference between the country's exports and imports – stood at $23.5 billion in July, larger than the $20.98 billion deficit recorded in the previous month and $19 billion in July 2023.

A spokesperson for the commerce ministry did not respond to Mint’s emailed queries.

Global economic weakness

Experts attributed the slump to global economic weakness. "Despite growing exports, the second successive month of decline in goods exports (in July) and three-quarter-high goods trade deficit show that global demand is yet to pick up meaningfully amid tepid growth and geo-economic fragmentation," said Manoranjan Sharma, chief economist at Infomerics Ratings.

"This process could negatively impact the macro-economy and the domestic currency, and necessitates focused efforts to step up exports for economic growth and structural transformation," he added.

Also read: Amid Bangladesh crisis, Centre eases norms for power exporters

According to a Bank of Baroda analysis, the trade deficit widened by about $10 billion during April-July from the same period of the previous year. "India’s merchandise trade deficit was higher, as imports have risen at a sharper pace than exports (both on sequential and cumulative basis). The sequential increase (in imports) is attributable to non-oil and non-gold imports, signalling resilient domestic demand," Dipanwita Mazumdar, an economist at the Bank of Baroda, said in the report.

"Going forward, we expect some correction in the trade deficit as a revival in the export cycle cannot be ruled out. Easier monetary conditions are expected to boost demand conditions globally," Mazumdar added.

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

MoreLess
First Published:19 Aug 2024, 10:22 AM IST
Business NewsEconomyExports of key commodities fall in April-July amid rising trade deficit

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    159.00
    03:59 PM | 9 OCT 2024
    -0.55 (-0.34%)

    Indian Oil Corporation share price

    164.75
    03:58 PM | 9 OCT 2024
    0.35 (0.21%)

    Zee Entertainment Enterprises share price

    128.90
    03:58 PM | 9 OCT 2024
    2.1 (1.66%)

    Ashok Leyland share price

    222.05
    03:59 PM | 9 OCT 2024
    -0.45 (-0.2%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Divis Laboratories share price

    5,972.90
    03:29 PM | 9 OCT 2024
    425.9 (7.68%)

    Lloyds Metals & Energy share price

    982.00
    03:29 PM | 9 OCT 2024
    52.2 (5.61%)

    Cipla share price

    1,681.05
    03:48 PM | 9 OCT 2024
    40.45 (2.47%)

    Infosys share price

    1,953.90
    03:50 PM | 9 OCT 2024
    5.4 (0.28%)
    More from 52 Week High

    Bank Of Maharashtra share price

    54.79
    03:56 PM | 9 OCT 2024
    -2.22 (-3.89%)

    Vodafone Idea share price

    9.19
    03:58 PM | 9 OCT 2024
    -0.31 (-3.26%)

    ITC share price

    491.80
    03:55 PM | 9 OCT 2024
    -16.1 (-3.17%)

    Tata Communications share price

    1,950.15
    03:52 PM | 9 OCT 2024
    -54.95 (-2.74%)
    More from Top Losers

    Gujarat Ambuja Exports share price

    142.45
    03:59 PM | 9 OCT 2024
    12 (9.2%)

    RITES share price

    324.60
    03:56 PM | 9 OCT 2024
    24 (7.98%)

    Divis Laboratories share price

    5,972.90
    03:29 PM | 9 OCT 2024
    425.9 (7.68%)

    Torrent Power share price

    1,935.20
    03:52 PM | 9 OCT 2024
    118.05 (6.5%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      77,455.000.00
      Chennai
      77,461.000.00
      Delhi
      77,613.000.00
      Kolkata
      77,465.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.85/L0.10
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in Economy

        HomeMarketsPremiumInstant LoanMint Shorts