India’s Export Growth and Trade Deficit in 2024-25
India’s exports, including both merchandise and services, grew by 4.86% year-on-year, reaching USD 393.22 billion for the period of April-September 2024-25, according to the Commerce Ministry. Despite this growth, the trade deficit increased significantly by 24.11%, rising from USD 44.18 billion to USD 54.83 billion.
Import and Export Details
The total imports for the first half of FY25 were USD 448.05 billion, up from USD 419.18 billion, marking a 6.89% increase. Merchandise exports rose slightly from USD 211.08 billion to USD 213.22 billion, while services exports increased from USD 163.92 billion to USD 180 billion.
Key Export Sectors
Engineering goods led the exports with USD 56.24 billion, followed by petroleum products at USD 36.56 billion, and electronic goods at USD 15.64 billion. Exports of drugs and pharmaceuticals were USD 14.43 billion, and organic and inorganic chemicals were USD 14.11 billion.
Commerce Secretary’s Remarks
Commerce Secretary Sunil Barthwal highlighted the consistent growth in exports and the success of ayush and apple products in global markets. He noted the challenges in penetrating these markets but emphasized their success.
Import Destinations and Gold Imports
The top import destinations for India included China, Russia, UAE, and the USA, with imports totaling USD 56.29 billion. Gold imports saw a significant increase, with USD 10.06 billion imported in August, a 103.7% rise from the previous year. Barthwal commented that gold imports are seasonal, influenced by festivals and traditions.
Doubts Revealed
Exports -: Exports are goods and services that a country sells to other countries. It’s like when India makes something and sends it to another country to sell.
Trade Deficit -: A trade deficit happens when a country buys more from other countries than it sells to them. It’s like spending more money on things from outside than earning from selling your own things.
Merchandise -: Merchandise refers to physical goods that are bought and sold. These are things you can touch, like toys, clothes, or electronics.
Services -: Services are activities done for others, like teaching, banking, or software development. They are not physical items but are still valuable.
Commerce Secretary -: The Commerce Secretary is a high-ranking official in the government who helps manage trade and business activities for the country. In this case, Sunil Barthwal is the person in charge.
Ayush -: Ayush refers to traditional Indian systems of medicine, including Ayurveda, Yoga, Unani, Siddha, and Homeopathy. These are natural ways to stay healthy.
Apple Products -: In this context, apple products refer to goods made from apples, like apple juice or dried apples, not the technology company.
Gold Imports -: Gold imports mean buying gold from other countries. People in India often buy gold for festivals, weddings, and as an investment.
Seasonal Demand -: Seasonal demand means people want more of something at certain times of the year, like buying more sweets during Diwali.
Import Partners -: Import partners are countries from which India buys goods. In this case, China, Russia, UAE, and USA are the main countries India buys from.
