India’s trade performance in the first half of the current financial year showed steady growth, according to the NITI Aayog Trade Watch report released on December 4. The country’s total trade for the first half of 2024 amounted to $576 billion, reflecting a 5.45% increase compared to the previous year.
While merchandise exports grew at a moderate pace, they were affected by declines in key sectors, including iron and steel and natural and cultured pearls. Imports, on the other hand, were driven by high-value commodities such as aircraft, spacecraft, mineral fuels, and vegetable oils. The services sector, however, saw a positive surplus, highlighting growth in that area.
In the first quarter of FY25, exports increased by 5.95% to $110 billion, but imports also rose by 8.4% to $173 billion, leading to a widening trade deficit. Iron and steel exports, in particular, saw a significant drop of 33%, primarily due to weak domestic demand.
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