Electronics, petroleum products and mobile phones drive export growth in the first half

Mobile phones, tobacco, processed food, electronics, gold jewelery and leather goods boosted India’s merchandise exports in the first six months of the fiscal year at a time when the growth in the volume of world trade is slowing.

Indian shipments of telecom instruments rose 88.24% year-on-year from April to September for FY23 to $5.03 billion, while those of gold and other precious metal jewelry rose 22.24% to $6.5 billion, boosted by consumer sentiment in the US, Middle East and Hong Kong. . Thailand, Switzerland and Singapore have emerged as new growth markets for the country’s gemstone and jewelry exports. Exports of petroleum products increased by 84.02% to $52.6 billion. Exports of processed fruits and vegetables increased by 42.42% during the period and those of electronic instruments increased by 24% to nearly $2 billion.

World trade growth is expected to slow to 1% in 2023, down sharply from the previous estimate of 3.4%, due to global uncertainties, the World Trade Organization said in its October forecast. India’s merchandise exports in the first half of FY23 increased by 16.96% year-on-year to $231.88 billion from $198.25 billion a year ago.

“We have worked with all stakeholders such as farmers, exporters and processors to ensure that quality agricultural and processed food products are exported from the country,” said Mr. Angamuthu, Chairman of the Export Development Authority agricultural and processed foods.

The country’s overall agricultural and processed food exports increased 25% to $13.7 billion from April to September of FY23 compared to the same period last year.

However, exports of iron and steel, organic chemicals, plastic raw materials, cotton fabrics and garments lagged, slowing overall merchandise export growth to single digits in the second quarter of the year. 23. Their exports contracted by 36.86%, 2.43%, 16.67% and 7.49% respectively in the first half of 2022-23.

The slowdown in Europe and China has also contributed to the fall in exports of engineering goods – of which iron and steel are key components – which account for almost a quarter of the country’s total merchandise exports.

“Engineering exports have been on a downward trend. In September, they recorded a drop of 10.85% while in cumulative terms, i.e. from April to September 2022, they only posted a meager increase of only 1.15% said EEPC India Chairman Arun Kumar Garodia, attributing the decline to a more than 60% drop in iron and steel exports in September and a 15% export duty on steel products. applicable since 21 May 2022.

Trade and Industry Minister Piyush Goyal is expected to meet with export promotion councils and industry representatives on Monday to discuss Indian trade issues.