Lok Sabha Question No. 1180 (UNSTARRED), answered on 2024-12-03
Subject: Merchandise Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Yaduveer Wadiyar

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1180 ANSWERED ON 03/12/2024

## MERCHANDISE EXPORTS

## 1180.  SHRI YADUVEER WADIYAR:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

(a) the  details  of  steps  taken  to  achieve  a  2.55  percent  increase  in  merchandise  exports  to $35.2 billion, sector- wise;

(b) the details of measures taken to tackle challenges posed by the 5 percent rise in imports to $56.2 billion;

(c) the  details  of  measures  taken  to  diversify  and  strengthen  country's  export  sectors  amidst global economic fluctuations; and

(d) the  details  of  the  strategic  initiatives  planned  to  reduce  the  trade  deficit  and  enhance competitiveness at World Trade Organization (WTO)?

## ANSWER

## वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) India's merchandise exports, as per the latest data available, have increased from USD 33.4 billion in October 2023 to USD 39.2 billion in October 2024, registering a growth of 17.2 percent.  The  non-petroleum  merchandise  exports  were  USD  34.6  billion  in  October  2024  as compared  to  USD  27.5  billion  in  October  2023,  registering  a  growth  of  25.6  percent.  India's export  promotion  efforts  are  diverse  and  multifaceted,  targeting  various  focused  sectors  and markets,  particularly  countries  of  significance,  to  enhance  and  to  diversify  exports.  The Government's support through financial incentives / schemes, trade agreements, trade infrastructure  development,  and  continuously  easing  trade  processes  through  digital  platforms coupled  with  new  and  dynamic  Foreign  Trade  Policy,  aims  to  create  a  more  robust  exports ecosystem  and  to  position  India  as  a  stronger  player  in  international  trade.  The  sector  wise merchandise export details are available at the following web link https://www.commerce.gov.in/trade-statistics/latest-trade-figures/.

(b) India's  merchandise  imports  were  USD  66.3  billion  in  October  2024  as  compared  to USD 63.9 billion in October 2023, registering a growth of 3.9 percent. It needs to be understood that  imports  also  consist  of  crucial  inputs  which  contributed  to  domestic  manufacturing  and exports.  This  is  becoming  especially  critical  as  India  is  increasingly  integrating  with  Global Value Chains (GVCs). For instance, capital goods and crude oils import forms key inputs into domestic  manufacturing  and  also  contributes  to  exports.  Moreover,  India's  economic  growth, which  is  highest  among  major  economies,  has  also  contributed  to  increase  in  imports.  The Department  of  Commerce  has  been  regularly  monitoring  and  sensitizing  line  Ministries  /

Departments  and  other  stakeholders  from  time  to  time  and  at  various  levels  on  the  issue  of imports on the following broad strategy: (i) Addressing domestic supply rigidities and looking at domestic  production  opportunities  /enhancement  of  capacity;  (ii)  Timely  use  of  trade  remedy options; (iii) Quality Controls; (iv) Enforcing rules of origin; (v) Tariff measures /inverted duty correction; and (vi) Import surge monitoring. Moreover, through Government active initiatives such as  Atmanirbhar Bharat,  Make in  India,  and  PLI  schemes,  the  country  aims  to  reduce  its import dependence while significantly increasing the global competitiveness of its industries.

(c) Several strategic initiatives have been undertaken for export diversification focusing on building competitiveness and resilience, reducing dependence on traditional export products and markets, and tapping into high-value sectors and services. Through robust Government policies, stronger trade agreements, better trade infrastructure development, and a push towards sustainability, India has managed to significantly increase its global export footprint. In terms of merchandise exports, India has steadily increased its share in global exports from 1.66% in 2013 to 1.81% in 2023. In commercial services trade, India continues to be a global leader, with its share in world exports rising significantly from 3.08% in 2013 to 4.31% in 2023. This growth is a  testament to the country's expertise in  IT services, digital innovation, and knowledge-driven sectors. Together, these trends underline India's dynamic contribution to global trade, showcasing the success of its economic reforms and positioning the nation as a key player in international trade.

(d) India's  merchandise trade deficit declined from  USD 264.9 billion in 2022-23 to USD 241.1 billion in 2023-24. In case of services, India's trade surplus has increased from USD 143.2 billion in 2022-23 to USD 162.7 billion in 2023-24. India's overall trade deficit declined from USD 121.6 billion in 2022-23 to USD 78.4 billion in 2023-24. This shows a trend of improving trade  balance  in  recent  years.  Moreover,  the  foreign  exchange  reserves  were  at  USD  675.7 billion  on  November  8,  2024.  At  the  current  level,  reserves  cover  more  than  11  months  of imports  (Source:  RBI  Bulletin,  November  2024).  India  is  engaging  in  both  multilateral  and bilateral  forums,  including  WTO,  to  increase  market  access  for  exports  and  to  enhance competitiveness for its product in international markets while also recognizing that a rules-based, non-discriminatory, fair, open, inclusive, equitable and transparent multilateral trading system, with WTO at its core, is indispensable for inclusive growth.

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