Exports positive in April-June quarter despite global challenges : Piyush Goyal

NEW DELHI : The exports from India showed robust growth in May and remained positive in June and the first quarter of the current fiscal year, despite global challenges, according to Commerce and Industry Minister Shri Piyush Goyal.

Goyal highlighted that growth in the services sector is contributing to the country’s positive export performance. “In May, exports were positive, and the figure for June is also positive. The first quarter is also in the positive territory,” Goyal told.

India’s merchandise exports increased by 9.1 percent to USD 38.13 billion in May. During April-May of this fiscal year, outbound shipments grew by 5.1 percent to USD 73.12 billion. The commerce ministry will officially release the export data for June on July 15.

“Despite the ongoing two wars (Russia-Ukraine and Israel-Hamas), the Red Sea crisis, and container shortage issues, our exports are in a positive zone. One more advantage that we have is the fast pace growth in the services exports,” Goyal said.

He added that the services sector has benefited from the government’s Digital India mission and the rollout of 4G and 5G networks, which are boosting India’s services exports.

Last month, Goyal stated that India’s goods and services exports are expected to surpass USD 800 billion this fiscal year despite global challenges. In 2023-24, shipments totaled USD 778.2 billion (goods  $437.1 billion and services  $341 billion).

Regarding foreign direct investments (FDI), Goyal said inflows are expected to increase once international recessionary conditions improve and interest rates in the US and Europe start to decline. Nevertheless, India continues to attract FDI.

High interest rates in the US and other developed countries make those markets profitable for investment, yet foreign portfolio investments (FPIs) in India reflect strong investor confidence. In June, FPIs invested Rs 26,565 crore in Indian equities, driven by political stability and a sharp market rebound.

FDI equity inflows in India fell by 3.49 percent to USD 44.42 billion in 2023-24. However, inflows during January-March FY24 rose by 33.4 percent to $12.38 billion compared to USD 9.28 billion in the same period the previous year. The total FDI, including equity inflows, reinvested earnings, and other capital, declined marginally by one percent to  $70.95 billion in 2023-24 from $71.35 billion in 2022-23, according to data from the Department for Promotion of Industry and Internal Trade (DPIIT).