India's October export soars over 17% to $39.2 billion, fastest in last 2 years

India’s goods exports witnessed a robust 17% surge in October, reaching $39.2 billion, marking the fastest pace in 28 months. Imports, meanwhile, grew at a more modest 3.8% to hit a record $66.3 billion, leading to a trade deficit of $27.1 billion.

Commerce Secretary Sunil Barthwal attributed the export growth to seasonal Christmas demand and emphasized optimism for the year ahead. “The pace now will be better than last year, and overall exports could cross the $800 billion mark in 2024-25,” Barthwal said, highlighting the impact of government initiatives like the Production-Linked Incentive (PLI) scheme on manufacturing competitiveness.

During April-October, non-oil exports reached record levels, reflecting the effectiveness of India’s strategic focus on six key sectors — engineering, electronics, pharma, chemicals, plastics, and agriculture — and 20 target countries, which account for 60% of global imports.

Key Growth Drivers

• Electronics: October exports soared by 45%, reaching $3.4 billion.
• Engineering Goods: Increased by 35% to $11.3 billion.
• Chemicals: Achieved a 27% growth, totaling $2.7 billion.
• Readymade Garments: Surged 35% to $1.2 billion.

Barthwal noted that the supply chain realignment, fueled by global buyers seeking alternatives to China and disruptions in traditional trade routes due to conflicts, presented an opportunity for India to expand its market share.

Challenges and Opportunities

Despite the recent boost, exports have grown modestly by 3.3% between April and October, touching $252 billion, while imports rose by 5.6% to $419 billion during the same period. Weak demand in Europe and the US, West Asia’s geopolitical tensions, and falling commodity prices have tempered overall growth.

Mithileshwar Thakur, Secretary-General of the Apparel Export Promotion Council (AEPC), emphasized the urgency of government support. “The Bangladesh crisis and ongoing wars have disrupted traditional trade routes, making this the right time for capacity augmentation and skilling in the MSME-driven sector,” he said.

FIEO President Ashwani Kumar called for measures to ease the liquidity crunch, including extended interest subvention and a five-year extension of the interest equalization scheme to bolster exporters’ competitiveness.