August saw a 9% decrease in merchandise exports to $34.71 billion due to a dip in diamonds and jewelry as well as iron ore, despite increases in engineering items, electronics, RMG of all textiles, and pharmaceuticals and drugs.
“The cumulative value of merchandise exports during April-August 2024 was $178.68 billion compared to $176.67 billion during April-August 2023, a positive growth of 1.14 percent,” according to a press release.
Exports of jewelry and gems fell 23% to $1.9 billion. According to the press release, in August, RMG shipments climbed by 12 percent to $1.27 billion while exports of electronic goods surged by roughly eight percent to $2.33 billion.
“Top five export destinations exhibiting positive growth in August 2024, in terms of change in value, vis a vis August 2023 are Kenya (105.72 percent), Russia (44.61 percent), The Netherlands (28.92 percent), Brazil (27.05 percent ) and U.K. (14.57 percent).”
As per Ashwani Kumar, President of the Federation of Indian Export Organizations (FIEO), the drop in commodity prices, logistical difficulties, and ongoing global economic uncertainty have all contributed to the steep decline in merchandise exports.
To provide exporters with a stable business environment immediate action is required on the liquidity front. The Government is to extend the The RoDTEP Scheme, which is set to expire in September 30, 2024. In addition, data transmission issues pertaining to ICEGATE, DGFT, and EDPMS may also be given top importance.
