Electronics, pharma top exports, beating slowdown | Mint
Active Stocks
Fri Feb 23 2024 15:58:13
  1. Tata Steel share price
  2. 145.50 -0.24%
  1. State Bank Of India share price
  2. 759.40 -0.86%
  1. HDFC Bank share price
  2. 1,420.90 0.08%
  1. NTPC share price
  2. 337.70 -0.54%
  1. ITC share price
  2. 411.60 -0.65%
Business News/ News / India/  Electronics, pharma top exports, beating slowdown
BackBack

Electronics, pharma top exports, beating slowdown

During April–October 2023, electronic goods exports rose 28% annually to $15.48 billion, according to data from the government’s Niryat portal.

Segments, such as gems and jewellery, petroleum products, engineering goods, and agriculture, saw either a sharp decline or flat growth in exports.Premium
Segments, such as gems and jewellery, petroleum products, engineering goods, and agriculture, saw either a sharp decline or flat growth in exports.

New Delhi: Electronic goods, and drugs and pharmaceuticals have emerged as standout performers for the country’s export basket amid a slowdown in global trade.

During April–October 2023, electronic goods exports rose 28% annually to $15.48 billion, according to data from the government’s Niryat (National Import-Export Record for Yearly Analysis of Trade) portal.

Similarly, exports of drugs and pharmaceuticals during the seven months ending October 2023 rose by 8% to $15.77 billion.

In comparison, other prominent export segments, such as gems and jewellery, petroleum products, engineering goods, and agriculture, saw either a sharp decline or flat growth.

India imports diamonds and crude oil since it doesn’t produce these commodities in any significant quantity. It exports refined petroleum products, and gems and jewellery, making value additions in the process.

India’s electronic goods exports were driven by higher smartphone sales globally.

According to data from the India Cellular and Electronics Association (ICEA), the apex industry body of the mobile and electronics industry, smartphone exports almost doubled to $5.5 billion during April-August 2023.

Meanwhile, gems and jewellery exports fell by about 21% annually during April-October 2023 to $18.60 billion.

During this period, the export value of petroleum products stood at $45.56 billion, down 17.84% annually.

Engineering goods exports also fell by about 2% annually to $61.57 billion during April-October 2023.

While there is a general concern around exports due to the slowing of the global economy, India is doing better than other economies, said Arpita Mukherjee, trade expert and professor at the Indian Council for Research on International Economic Relations (Icrier).

“Gems and jewellery exports are typically cyclical. They are expected to pick up from December," she added.

Indian exports have been impacted by a global demand slowdown resulting in muted export growth and a high trade deficit in recent months.

During October 2023, India’s trade deficit stood at a record high of $31.46 billion, with imports at $65.03 billion and exports at $33.57 billion, due to a sharp rise in gold imports during the festive season and a higher oil bill.

The trade deficit stood at $26.31 billion during October 2022, with imports at $57.91 billion and exports at $31.60 billion.

The global economy has been grappling with rising inflation and high-interest rates, particularly in Europe and the US, India’s biggest export markets.

The trade slowdown in the first half of 2023 appears to have involved a large number of economies and a wide array of goods—specifically, certain categories of manufactured goods such as iron and steel, office and telecom equipment, textiles and clothing.

However, sales of passenger vehicles have surged in 2023, World Trade Organization’s chief economist Ralph Ossa said in an official blog recently.

“The stronger growth predicted for 2024 is likely to be driven by increased trade in goods closely linked to the business cycle, such as machinery and consumer durables, which tend to recover when economic growth stabilizes," Ossa added.

During October, services exports stood at $28.70 billion, while imports were $14.32 billion, compared with $29.37 billion worth of exports and $14.91 billion of imports during the previous month.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 10 Dec 2023, 09:45 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App