India’s Exports and Imports in July 2024: A Closer Look
In July 2024, India’s total exports, which include both merchandise and services, reached USD 62.42 billion. This marks a 2.81% increase compared to the same month last year, when exports were USD 60.71 billion.
Merchandise and Services Exports
Merchandise exports saw a slight decline from USD 34.49 billion to USD 33.98 billion. However, services exports increased from USD 26.22 billion to USD 28.43 billion during the same period.
Imports and Trade Deficit
India’s total imports, combining merchandise and services, rose from USD 67.23 billion to USD 72.03 billion in July, a 7.13% increase. This led to a wider trade deficit, which grew from 6.5% to 9.61%.
Yearly Performance and Government Initiatives
For the first four months of the financial year 2024-25 (April-July), India’s total exports stand at around USD 260 billion. The government is optimistic about reaching its full-year export target of USD 800 billion. In the financial year 2023-24, India recorded exports of USD 778 billion, with services exports rising from USD 325.3 billion to USD 341.1 billion, while merchandise exports slightly declined from USD 451.1 billion to USD 437.1 billion.
To boost exports, the government launched the Production Linked Incentive (PLI) scheme in various sectors, including electronic goods. This initiative aims to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain, and reduce dependency on imports.
Overall, imports declined from USD 898.0 billion in 2022-23 to USD 853.8 billion in 2023-24, and the trade deficit improved significantly from USD 121.6 billion to USD 75.6 billion.
Doubts Revealed
Exports -: Exports are goods or services that a country sells to other countries. For example, India might sell spices, software, or clothes to other countries.
Imports -: Imports are goods or services that a country buys from other countries. For example, India might buy oil, electronics, or machinery from other countries.
Merchandise -: Merchandise refers to physical goods that are bought and sold, like clothes, electronics, and food items.
Services -: Services are activities done for others, like banking, software development, and tourism. They are not physical items but still valuable.
Trade deficit -: A trade deficit happens when a country buys more from other countries than it sells to them. It means imports are more than exports.
Production Linked Incentive scheme -: The Production Linked Incentive (PLI) scheme is a government program in India that gives financial rewards to companies for increasing their production. It aims to boost manufacturing and exports.
