Chennai: Buoyed by festive demand in the key markets, merchandise exports in October rose 17.26 per cent year-on-year to $39.2 billion, while it grew 13.3 per cent sequentially. While imports rose 3.88 per cent year-on-year, the sequential growth of 20 per cent saw the trade deficit widening to $27.14 billion.
Merchandise exports stood at $39.2 billion against $33.43 billion in October 2023 and $34.58 billion in September. Meanwhile, imports stood at $66.34 billion against $63.96 billion in October 2023 and $55.36 million in September 2024. This saw the trade deficit widening on a sequential basis from a five-month low level of $20.8 billion in September while easing from $30.43 billion in October 2023.
“One of the chief reasons underpinning the sequential rise in the trade deficit appears to be a jump in the volume of crude oil imports, as well as a festive season-led uptick in gold imports,” said Aditi Nayar, chief economist, ICRA.
Some of the product categories that saw significant growth in exports include rice, which rose 85.79 per cent after the government lifted the curbs and exempted export duties. Electronic goods exports at 45.69 per cent and engineering goods at 39.37 per cent have been the leading propellers of shipments in recent times. Readymade garments rose 35 per cent on improved demand from the US and EU.
Among the destinations, Singapore reported 197 per cent growth in exports, UAE 43.32 per cent, the largest market US 11.47 per cent and UK 42.12 per cent.
The cumulative merchandise exports during April-October 2024 grew 3.18 per cent to $252.28 billion.
Imports grew 3.88 per cent year-on-year to $66.34 billion against $63.86 billion in October 2023, while it grew 20 per cent sequentially from $55.36 billion. Gold imports, which had dropped in September due to high prices and heavy stocking in the previous month, once again moved up. As per the data, gold imports were just 1.43 per cent down in value despite prices being 30 per cent higher against October 2023. Crude oil imports also went up in October.
Services exports were up 21 per cent for October 2024 at $34.02 billion, while services imports were up 26 per cent to $17 billion and the trade surplus stood at $17 billion. The trade surplus for the April-October period was $101.41 billion.
