Despite the prolonged Russia-Ukraine conflict, disruptions in supply chain, global headwinds in terms of high inflation rates and demand slowdown in some of the major economies, the Indian exports have held well to register 17.1% growth in April-August compared to the corresponding period last year, according to commerce ministry’s data.
With 33 billion exports, the August numbers were similar to last year’s.
The electronics export performance showed a positive growth with 54.7% increase in April-August, compared to the same period last year. The readymade garment segment has gone up by 17.8% during this period.
The agricultural exports did well with marine products registering a growth of 7.6%, meat and dairy products seeing a growth of 13.6%, fruits and vegetables exports growing at 8.8%, cereal preparations and processed food products by 30.6% and coffee at 36.7%. Sectors such as oil mills, oil seeds, tea, rice etc., too, have been doing well.
Some of the sectors that saw a dip were cotton yarns/fabrics/made-ups, where exports declined by 32%, iron-ore exports by 90% and handicrafts by 36%. The drop in exports in cotton yarn and iron ore has contributed to meeting the domestic demands and helped domestic manufacturing.
The exports have been successful in diversifying their exports from traditional economy to non-traditional countries such as Indonesia (37.8% growth), Brazil (64.6% growth), South Africa (52.4% growth), Australia (31.6% growth), France (38.9% growth).
The ministry press release stated: “We are very confident of the fundamentals of Indian economy being in a very strong position and its ability to tackle global headwinds, if any. We have seen a sustained improvement in demand conditions boosting new order intakes and this has pushed output growth to second highest in 9 months. The S&P Global India Manufacturing Purchasing Managers Index (PMI) has signalled a strong sentiment towards India’s manufacturing growth. The survey by S&P shows that factory orders rose at the quickest pace since last November, boosted by strengthening demand conditions, new client wings and advertising.”
This sentiment has been supported by GST collections rising 28% year-on-year to around Rs.1.43 lakh crores in August, the sixth straight month of over Rs.1.4 lakh crore mop-up. This suggests a pickup in economic activity as well as success of the GST Council in improving compliance.
In Quarter-1, the GDP has grown by 13.5% which has been the fastest in a year. The numbers suggest that India is on track to achieve a 7.5% GDP growth which has been estimated by many agencies.
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