April 2024

Engineering exports recorded around 3.3% cumulative growth year-on-year during the first five months of fiscal 2023-24

                            
                            Therefore, the FTAs with UAE and Australia can be deemed effective                        

                            In fact, March 2024 recorded positive Y-o-Y growth for almost all regions including North America, EU, WANA, ASEAN, NE ASIA, CIS and South Asia                        

                            The revival in exports to Europe despite the logistics issues including the Red Sea Crisis is 
a positive observation from the present data                        

                            The decline in cumulative engineering exports to our neighbouring countries was mainly due to forex shortages and liquidity crunch                        

                            Decline in exports was also noticed in Latin America and Oceania regions in March 2024                        

                            The decline in Latin America can be attributed to high transportation cost and high tariff structure faced by India due to lack of any comprehensive trade agreement                        

                            Overall although Indian engineering exports failed to achieve the government set target of USD 122.8 billion in FY 2023-24, it performed well given the weak global trade trends, dwindling demand, forex crisis and geopolitical conflicts                        

                            According to the Quick Estimates of Department of Commerce, Government of India, share of engineering exports in India’s total merchandise exports during fiscal 2023-24 increased to 25.01 percent from 23.73 percent in 2022-23.

Monthly Trend

Highlights

Product Panels

Impact of Exchange Rate

Conclude

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April-2024 engineering exports hit peak growth for fiscal 2023-2024

Trade Flow	Export figures (in $ billion)
	Mar-2023	Mar-2024	Mar-2024 over Mar-2023
				Engineering exports	8.95	8.67	-3.17%
				Overall merchandise exports	34.62	34.99	1.08%
Share of engineering (%)	25.85%	24.76%	---
Service Exports	25.78	29.57	14.70

Source : Compiled from data by DGCI&S and Quick Estimates published by the Government of India

Overall Engineering Exports vs Engineering Exports Excluding Steel Segment (Values in USD Million)

Trade Flow	Export in Mar-2023	Export in Mar-2024	Growth
				Overall engineering exports	8949.36	8665.39	-3.17
				Engineering exports excluding Iron and Steel	7622.24	7821.49	2.61

Source : DGCI&S, Govt. of India

Engineering Exports: Monthly Trend

The monthly engineering figures for 2023-24 vis-à-vis 2022-23 are shown below as per the latest DGCI&S estimates:

Table 1: Engineering Exports: Monthly Trend in 2023-24

US$ million

Month	2022-23	2023-24	Growth (%)
April	8949.36	8665.39	-3.17

Source : DGCIS, Govt. of India

TOP 25 ENGINEERING EXPORT DESTINATIONS IN April-April 2023-24

We now look at the export scenario of the top 25 nations that had highest demand for Indian engineering products during March 2024 over March 2023 as well as in cumulative terms during April-March 2023-24 vis-à-vis April-March 2022-23. The data clearly shows that top 25 countries contribute almost 76% of total engineering exports.

Table 2: Engineering exports country wise

(US$ million)

Countries	Mar-2023	Mar-2024	Growth (%)	April-April 2022-23	April-April 2023-24	Growth (%)
U S A	1399.27	1416.67	1.24%	1399.27	1416.67	1.24%
SAUDI ARAB	292.72	435.72	48.85%	292.72	435.72	48.85%
U ARAB EMTS	360.51	392.55	8.89%	360.51	392.55	8.89%
SINGAPORE	296.57	375.91	26.75%	296.57	375.91	26.75%
GERMANY	353.12	321.62	-8.92%	353.12	321.62	-8.92%
ITALY	398.6	309.14	-22.44%	398.6	309.14	-22.44%
U K	276.69	301.16	8.84%	276.69	301.16	8.84%
MEXICO	251.49	296.45	17.88%	251.49	296.45	17.88%
TURKEY	274.51	219.06	-20.2%	274.51	219.06	-20.2%
CHINA P RP	183.24	210.29	14.76%	183.24	210.29	14.76%
KOREA RP	212.65	209.33	-1.56%	212.65	209.33	-1.56%
TAIWAN	49.16	183.02	272.3%	49.16	183.02	272.3%
JAPAN	178.17	173.65	-2.53%	178.17	173.65	-2.53%
NEPAL	214.48	171.61	-19.99%	214.48	171.61	-19.99%
BRAZIL	174.27	165.41	-5.08%	174.27	165.41	-5.08%
THAILAND	161.1	152.57	-5.29%	161.1	152.57	-5.29%
FRANCE	182.45	152.27	-16.54%	182.45	152.27	-16.54%
BANGLADESH PR	199.84	148.18	-25.85%	199.84	148.18	-25.85%
BELGIUM	138.62	147.83	6.65%	138.62	147.83	6.65%
PHILIPPINES	57.72	145.28	151.69%	57.72	145.28	151.69%
NETHERLAND	211.48	137.75	-34.86%	211.48	137.75	-34.86%
SOUTH AFRICA	176.1	130.68	-25.8%	176.1	130.68	-25.8%
INDONESIA	286.96	118.79	-58.6%	286.96	118.79	-58.6%
RUSSIA	130.91	118.56	-9.43%	130.91	118.56	-9.43%
VIETNAM SOC REP	112.57	116.45	3.45%	112.57	116.45	3.45%
Total engineering exports to top 25 countries	6573.19	6549.94	-0.35%	6573.19	6549.94	-0.35%
Total engineering exports	8949.36	8665.39	-3.17%	8949.36	8665.39	-3.17%

Source : DGCI&S

REGION WISE INDIA’S ENGINEERING EXPORTS

The following table depicts region wise India’s engineering exports for April-March 2023-24 as opposed to April-March 2022-23.

Table 3: Region wise engineering exports in April-February 2023-2024 vis-à-vis April-April 2022-2023

(US$ million)

Regions	Mar-2023	Mar-2024	Growth (%)	April-April 2022-23	April-April 2023-24	Growth (%)
NORTH AMERICA	1742.26	1824.57	4.72%	1742.26	1824.57	4.72%
EUROPEAN UNION	1921.75	1593.57	-17.08%	1921.75	1593.57	-17.08%
WANA	1106.11	1140.93	3.15%	1106.11	1140.93	3.15%
ASEAN	1044.45	1021.53	-2.19%	1044.45	1021.53	-2.19%
N E ASIA	633.16	788.09	24.47%	633.16	788.09	24.47%
OTHER EUROPE	580.51	579.45	-0.18%	580.51	579.45	-0.18%
SSA( Sub Saharan Africa)	639.96	522.19	-18.4%	639.96	522.19	-18.4%
SOUTH ASIA	507.19	476.65	-6.02%	507.19	476.65	-6.02%
LATIN AMERICA	483.27	444.51	-8.02%	483.27	444.51	-8.02%
CIS	155.27	167.58	7.92%	155.27	167.58	7.92%
OCEANIA	133.42	105.48	-20.94%	133.42	105.48	-20.94%
OTHERS	1.99	0.85	-57.48%	1.99	0.85	-57.48%

Note : *Figures have been rounded off.

Source : DGCI&S **Myanmar has been included in ASEAN and not in South Asia, since ASEAN is a formal economic grouping.

PRODUCT PANEL WISE ENGINEERING EXPORTS

In this section we look at the Engineering Panel wise exports for the month of March 2024 vis-à-vis March 2023 as well as the cumulative exports for April-March 2023-24 vis-à-vis April-March 2022-23. These are indicated in the tables below.

Table 4a. Trend in exports of iron and steel and its products

(US$ million)

Product panels	April-2023	April-2024	Growth	April-April 2022-23	April-April 2023-24	Growth
IRON AND STEEL	1327.12	843.9	-36.41%	1327.12	843.9	-36.41%
PRODUCTS OF IRON AND STEEL	830.88	730.88	-12.04%	830.88	730.88	-12.04%
Sub Total	2158	1574.77	-27%	2158	1574.77	-27%

Source : DGCI&S

Table 4b. Trend in exports of Non-Ferrous Metals and Products

US$ Million

Product panels	April-2023	April-2024	Growth	April-April 2022-23	April-April 2023-24	Growth
Aluminium and products made of Aluminium	623.76	647.16	3.75%	623.76	647.16	3.75%
Copper and products made of copper	193.85	128.42	-33.75%	193.85	128.42	-33.75%
Lead and products made of Lead	39.28	63.14	60.73%	39.28	63.14	60.73%
Nickel and products made of Nickel	13.59	13.24	-2.61%	13.59	13.24	-2.61%
Other Non Ferrous Metals and their products	61.81	60.81	-1.62%	61.81	60.81	-1.62%
Tin and products made of Tin	0.62	1.24	99.55%	0.62	1.24	99.55%
Zinc and products made of zinc	92.01	66.65	-27.56%	92.01	66.65	-27.56%
Sub Total	1024.93	980.65	-4%	1024.93	980.65	-4%

Source : DGCI&S

Table 4c. Trend in exports of Industrial Machinery

US$ Million

Product panels	April-2023	April-2024	Growth	April-April 2022-23	April-April 2023-24	Growth
IC Engines and Parts	300.15	286.69	-4.48%	300.15	286.69	-4.48%
Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc	662.21	685.32	3.49%	662.21	685.32	3.49%
Machine Tools	66.34	59.58	-10.19%	66.34	59.58	-10.19%
Machinery for ATMs, Injecting Moulding machinery, valves, etc	209.02	206.31	-1.29%	209.02	206.31	-1.29%
Nuclear Reactors, Industrial Boilers and Parts	58.38	65.7	12.54%	58.38	65.7	12.54%
Pumps of all types	123.46	107.59	-12.85%	123.46	107.59	-12.85%
Sub Total	1419.55	1411.19	-0.59%	1419.55	1411.19	-0.59%

Source : DGCI&S

Table 4d. Trend in exports of Electrical Machinery and Equipment

US$ Million

Product panels	April-2023	April-2024	Growth	April-April 2022-23	April-April 2023-24	Growth
Electric Machinery and Equipment	941.9	1032.84	9.65%	941.9	1032.84	9.65%

Source : DGCI&S

Table 4e. Trend in exports of Auto and auto parts

US$ Million

Product panels	April-2023	April-2024	Growth	April-April 2022-23	April-April 2023-24	Growth
Auto Components/Parts	609.532	605.181	-0.71%	609.532	605.181	-0.71%
AUTO TYRES AND TUBES	227.711	253.217	11.2%	227.711	253.217	11.2%
Motor Vehicle/cars	676.512	602.79	-10.9%	676.512	602.79	-10.9%
Two and Three Wheelers	204.248	248.681	21.75%	204.248	248.681	21.75%
Sub Total	1718.004	1709.869	-0.47%	1718.004	1709.869	-0.47%

Source : DGCI&S

Table 4f. Trend in exports of aircraft, spacecraft and parts and ships, boats and floating structures

US$ Million

Product panels	April-2023	April-2024	Growth	April-April 2022-23	April-April 2023-24	Growth
Aircrafts, Spacecrafts and Parts	240.91	415.64	72.53%	240.91	415.64	72.53%
Ships, Boats and Floating Structures	323.18	265.16	-17.95%	323.18	265.16	-17.95%
Sub Total	564.08	680.8	20.69%	564.08	680.8	20.69%

Source : DGCI&S

Table 4g. Trend in exports of other engineering products

US$ Million

Product panels	April-2023	April-2024	Growth	April-April 2022-23	April-April 2023-24	Growth
BICYCLE AND PARTS	29.51	27.94	-5.33%	29.51	27.94	-5.33%
Cranes, Lifts and Winches	64.61	94.88	46.84%	64.61	94.88	46.84%
Hand Tools, Cutting Tools and Implements made of Metals	78.06	77.57	-0.62%	78.06	77.57	-0.62%
Medical and Scientific Instruments	184.89	189.27	2.37%	184.89	189.27	2.37%
OFFICE EQUIPMENTS	30.36	18.98	-37.49%	30.36	18.98	-37.49%
OTHER CONSTRUCTION MACHINERY	220.09	242.88	10.36%	220.09	242.88	10.36%
OTHER MISC. ITEMS	353.22	453.57	28.41%	353.22	453.57	28.41%
PRIME MICA AND MICA PRODUCTS	3.91	2.24	-42.66%	3.91	2.24	-42.66%
Railway Transport and Parts	27.71	31.16	12.46%	27.71	31.16	12.46%
PROJECT GOODS	0.35	0.11	-67.67%	0.35	0.11	-67.67%
OTHR RUBBER PRODCT EXCPT FOOTW	130.19	136.67	4.98%	130.19	136.67	4.98%

Source : DGCI&S

ENGINEERING PRODUCT PANELS – COUNTRY-WISE ANALYSIS

Table 5: Export of Different Panels

(US$ million)

Product panels	Top 5 nations	April-April 2022-23	April-April 2023-24	Growth (%)
Iron and Steel and Products made of Iron and Steel
	U S A	252.76	256.3	1%
	ITALY	248.77	183.97	-26%
	U K	74.55	86.61	16%
	BELGIUM	74.64	83.19	11%
	U ARAB EMTS	113	79.27	-30%
Non-Ferrous Metals and Products made of Non-Ferrous Metals
	TAIWAN	16.79	138.17	723%
	U S A	114.74	125.32	9%
	KOREA RP	118.07	100.96	-14%
	CHINA P RP	27.45	64.39	135%
	JAPAN	75.23	51.73	-31%
Industrial Machinery
	U S A	289.21	296.12	2%
	GERMANY	78.77	76.92	-2%
	THAILAND	67.03	63.71	-5%
	U ARAB EMTS	51.18	61.2	20%
	CHINA P RP	50.34	52.6	4%
Electrical Machinery
	U S A	216.59	227.71	5%
	SINGAPORE	61.54	112.62	83%
	U K	47.87	57.29	20%
	GERMANY	76.98	50.12	-35%
	KOREA RP	17.15	47.4	176%
Automobiles
	U S A	190.9	187.84	-2%
	MEXICO	138.88	164.47	18%
	SAUDI ARAB	90.91	132.36	46%
	TURKEY	75.95	97.66	29%
	SOUTH AFRICA	112	78.97	-29%
Aircrafts and Spacecraft parts and products
	SAUDI ARAB	3.9	112.74	2792%
	U ARAB EMTS	15.17	53.22	251%
	U S A	47.97	51.6	8%
	SRI LANKA DSR	0.75	28.55	3683%
	FRANCE	20.57	19.38	-6%
Ships Boats and Floating products and parts
	SINGAPORE	145.13	170.67	18%
	U ARAB EMTS	12	38.02	217%
	NORWAY	0	33.42	N/A
	FINLAND	0	11.73	N/A
	SRI LANKA DSR	12.87	7.53	-42%
Project Goods
	U S A	0.01	0.06	375%
	TANZANIA REP	0.14	0.02	-85%
	U ARAB EMTS	0	0.01	N/A
	GERMANY	0	0.01	61%
	AUSTRIA	0	0.01	N/A
Other Rubber Product Except Footwear
	U S A	29.34	30.06	2%
	GERMANY	9.42	9.62	2%
	CHINA P RP	5.02	5.34	6%
	U ARAB EMTS	4.85	4.86	0%
	NETHERLAND	3.96	4.84	22%
Other engineering products
	U S A	257.46	241.27	-6%
	PHILIPPINES	6.08	97.1	1497%
	U K	48.64	51.96	7%
	GERMANY	48.33	46.3	-4%
	U ARAB EMTS	38.72	40.24	4%

Source : DGCI&S

ENGINEERING EXPORTS – STATE-WISE ANALYSIS

State wise engineering export performance

The table below indicates the exports from top Indian states. It is evident from the table that almost 90.4 % of India’s exports is contributed by the listed 12 states. Within this almost 50 percent of exports is done by Maharashtra, Tamil Nadu and Gujarat together.

Table 6: Top state wise engineering export performance - April-April 2023-24

(US$ million)

Top States	Cumulative Export April-April 2023-24	Share %	Remark
Maharashtra	22992.9	21.03%	90.4% share covered by top 12 states
Tamil Nadu	16844.6	15.41%
Gujarat	14753.3	13.5%
Odisha	7125.2	6.52%
Haryana	6753.8	6.18%
Karnataka	6709.1	6.14%
Andhra Pradesh	4885.6	4.47%
Delhi	4599.7	4.21%
Uttar Pradesh	4117.9	3.77%
Telangana	3458	3.16%
Rajasthan	3405.3	3.12%
West Bengal	3134.8	2.87%
Punjab	2775.3	2.54%
Madhya Pradesh	1849.6	1.69%
Daman & Diu And Dadra & Nagar Haveli	1475	1.35%
Chhattisgarh	984.8	0.9%
Jharkhand	922.2	0.84%
Kerala	905.2	0.83%
Uttarakhand	791.1	0.72%
Goa	344.6	0.32%
Puducherry	209.7	0.19%
Himachal Pradesh	145.2	0.13%
Chandigarh	50.1	0.05%
Bihar	50	0.05%
Assam	16.3	0.01%
Jammu & Kashmir	10.9	0.01%
Arunachal Pradesh	2.4	0%
Sikkim	1.6	0%
Meghalaya	0.7	0%
Andaman & Nicobar	0.3	0%
Ladakh	0	0%
Mizoram	0	0%
Lakshadweep	0	0%
Manipur	0	0%
Tripura	0	0%
Nagaland	0	0%

Source : DGCI&S

Region wise engineering exports

In terms of region, western region which includes industrial states like Maharashtra and Gujarat is the front runner in terms of exports with 34.5 percent share. Tamil Nadu from the Southern Region has improved its export performance and it ranked second after Maharashtra, while Gujarat and Odisha ranked third and fourth during AprilMarch 2023-24 and Haryana came up to fifth position while Karnataka came down to sixth position compared to previous the previous months.

Note : DGCI&S state wise data available till February-2024

Table 7: Region wise exports from India till February-2024

Value in US$ million

Region	Mar-2023($Mn)	Mar-2024($Mn)	Growth %	Apr-Mar 2022-23($Mn)	Apr-Mar 2023-24 ($Mn)	Growth %
WESTERN REGION	4005.3	4070.4	1.63%	39552.8	41415.4	4.71%
SOUTHERN REGION	2792.5	3884.2	39.09%	31372.4	33012.2	5.23%
NORTHERN REGION	2088.1	2235	7.04%	21455.5	22650.9	5.57%
EASTERN REGION	1300.5	1096.1	-15.72%	13870.7	12236.7	-11.78%
Grand Total	10186.4	11285.7	10.79%	106251.4	109315.2	2.88%

CORRELATION BETWEEN MANUFACTURING PRODUCTION AND ENGINEERING EXPORTS

Engineering sector is an important component of the broader manufacturing sector and the share of engineering production in overall manufacturing output is quite significant. As exports generally come from what is produced within a country, some correlation between manufacturing production growth and engineering export growth should exist. We briefly looked at the trend in manufacturing growth as also engineering export growth to see if they move in tandem. It may be mentioned that manufacturing has 77.63% weightage in India’s industrial production.

Engineering export growth and manufacturing output growth moved in the same direction in as many as nine out of twelve months in each of the fiscal years 2019-20 and 2020-21. During fiscal 2021-22, engineering export growth and manufacturing growth moved in the same direction in seven out of twelve months while in fiscal 2022-23, as many as 10 out of 12 months saw engineering exports and manufacturing output moved in the same direction.

Ten out of the first ten months of fiscal 2023-24 saw engineering exports growth and manufacturing output growth moved in the same direction barring April 2024. During April, decline in engineering export was slightly higher over Mar 2024 while manufacturing output growth recorded a sharp rise. During May and July 2023, engineering exports witnessed slower decline and manufacturing output managed higher growth over the previous month while in June 2023, engineering exports conceded higher decline and manufacturing output growth slowed down. During August, October, December in 2023 and February 2024, both engineering exports and

manufacturing output recorded higher growth (engineering exports came back to growth path in August and December 2023 from decline in previous month) while in September 2023, November 2023 and January 2024, both of them conceded slower growth or decline.

The link between these two may not be established on a monthly basis, but a positive correlation may be seen if medium to long term trend is considered.

Table 8: Engineering exports growth vis-à-vis manufacturing growth from April 2020

Months/ Year	Engg. Export Growth (%)	Manufacturing Growth (%)
April 2020	-63.05	-66.6
May 2020	-22.17	-37.8
June 2020	-5.18	-17.0
July 2020	10.56	-11.4
August 2020	-7.01	-7.6
September 2020	4.09	0.4
October 2020	-5.01	4.5
November 2020	-8.37	-1.6
December 2020	-0.93	2.7
January 2021	16.66	-0.9
February 2021	-4.94	-3.4
March 2021	67.75	28.3
April 2021	236.85	196.0
May 2021	50.21	32.1
June 2021	51.00	13.2
July 2021	42.57	10.5
August 2021	58.63	11.1
September 2021	35.11	4.3
October 2021	51.76	3.3
November 2021	37.28	0.3
December 2021	47.42	0.6
January 2022	25.63	1.9
February 2022	35.49	0.2
March 2022	19.72	1.4
April 2022	18.30	5.6
May 2022	11.45	20.6
June 2022	3.01	13.0
July 2022	-0.03	3.2
August 2022	-12.64	-0.5
September 2022	-11.39	2.0
October 2022	-19.68	-5.8
November 2022	0.09	6.7
December 2022	-11.60	3.6
January 2023	-9.76	4.0
February 2023	-9.73	5.6
March 2023	-7.49	0.5
April 2023	-7.27	5.5
May 2023	-4.13	6.3
June 2023	-10.94	3.5
July 2023	-6.65	5.0
August 2023	7.83	9.3
September 2023	6.81	4.5
October 2023	7.20	N A
November 2023	-3.48	1.2
December 2023	9.82	4.5
January 2024	4.21	3.6
February 2024	15.9	5.0
March 2024	10.66	N A

Source :Department of Commerce and CSO

IMPACT OF EXCHANGE RATE ON INDIA’S EXPORTS

How did the exchange rate fare during March 2024 and what was the recent trend in Re-Dollar movement? In order to get a clearer picture of the recent Re-Dollar trend, not only we took the exchange rate of March 2024, but also considered monthly average exchange rate of Rupee vis-à-vis the US Dollar for each month of fiscal 2023-24 as well as 2022-23 as mere one-month figure does not reflect any trend. The following table clearly depicts the short-term trend:

Fig 3: Trend of Rupee vis-a-vis US dollar from April 2020

(Monthly Average Rate of FBIL has been considered)

Source : FBIL

Table 9: USD-INR monthly average exchange rate in 2024-25 vis-à-vis 2023-24

(As per latest data released by FBIL)

Monthly Average Exchange Rate (1 USD to INR)			Year-on-Year Change (%)	Direction	Month-on-Month Change (%)	Direction
Month	2023-24	2024-25
April	82.02	83.41	1.69	Depreciation	0.49	Depreciation

Rupee depreciation vis-à-vis the US Dollar continued on a year-on-year basis and this time in March 2024, Rupee depreciated on a month-on-month basis too after appreciation in previous three months. Outflow of funds from India capital market due to global economic and geo political uncertainty pushed Rupee lower.

Table 10: USD-INR monthly average exchange rate in 2023-24 vis-à-vis 2022-23

(As per latest data released by FBIL)

Monthly Average Exchange Rate (1 USD to INR)			Year-on-Year Change (%)	Direction	Month-on-Month Change (%)	Direction
Month	2022-23	2023-24
Apr	76.17	82.02	7.68	Depreciation	-0.33	Appreciation
May	77.32	82.34	6.49	Depreciation	0.39	Depreciation
Jun	78.04	82.23	5.37	Depreciation	-0.13	Appreciation
Jul	79.60	82.15	3.20	Depreciation	-0.10	Appreciation
Aug	80.23	83.04	3.50	Depreciation	0.78	Depreciation
Sep	80.23	83.04	3.50	Depreciation	0.30	Depreciation
Oct	82.34	83.24	1.09	Depreciation	0.24	Depreciation
Nov	81.81	83.30	1.82	Depreciation	0.07	Depreciation
Dec	82.46	83.28	0.99	Depreciation	-0.02	Appreciation
Jan	81.90	83.12	1.49	Depreciation	-0.19	Appreciation
Feb	82.61	82.96	0.42	Depreciation	-0.19	Appreciation
Mar	82.29	83.00	0.86	Depreciation	0.05	Depreciation

Source : FBIL, EEPC Research

TREND IN ENGINEERING TRADE BALANCE

We now present the trend in two-way yearly trade for the engineering sector for the 2023-24 depicted in the table below:

Table 11: Monthly Trend in Engineering Trade Balance for the current FY

(US$ million)

Trade Flow	Apr
Engineering Export	11034.8
Engineering Import	10985.6
Trade Balance	-0.4

Source : DGCI&S

TO CONCLUDE...

The Indian engineering exports revived in the last few months of FY 2023-24 contributing towards the significant cumulative positive growth for the entire fiscal. Revival of exports was noted in many key regions including North America, EU and North East Asia. Our new FTAs with UAE and Australia has also been effective in boosting our exports to WANA and Oceania regions. It is important to mention here that the global trade is also showing signs of revival. This performance was made even though the Indian exporters faced a number of issues including decline in demand in key geographies, forex crisis in many markets, geopolitical conflicts across the world and logistical issues. In 2023, global merchandise exports declined by 5% - compared to that India’s performance has been good.

The UNCTAD update further mentions that the outlook for 2024 remains positive despite certain uncertainties such as the geopolitical conflicts and logistical issues. The protectionist environmental policies of EU and slow economic revival in China will continue to create uncertainties for the exporters. To create further opportunities it is essential that we increase our value added exports. Also, new FTAs with important partners especially those in Latin America would be key for trade diversification. Overall although worries are there, the exporting community in India and across the world remains hopeful of 2024.