Merchandise Exports See Marginal Dip of 1% in December 2024; FIEO Urges Supportive Budget for Export Boost
Merchandise exports in December 2024 stood at USD 38.01 billion, reflecting a slight 1% year-on-year decline. FIEO President, Mr Ashwani Kumar, attributed this drop to volatility in commodity and metal prices, along with ongoing international trade disruptions and currency fluctuations. Geopolitical tensions in the Gulf region further exacerbated logistical challenges, affecting export flows to key markets like Europe, Africa, and the CIS.
Mr Kumar emphasized the urgent need for enhanced support in the upcoming Budget, particularly through an expanded PLI Scheme, to boost manufacturing capacity and include labour-intensive sectors. He also highlighted the persistent issue of trade finance, which continues to hinder the global competitiveness of MSMEs.
Imports for December rose by 4.8% to USD 59.95 billion, though they fell from the record-high USD 63.86 billion in November 2024, resulting in a reduced trade deficit of USD 21.94 billion for the month. For the period April-December 2024, exports increased by 1.6% to USD 321.71 billion, while imports grew by 5.15% to USD 532.48 billion.
Looking ahead, Mr Kumar stressed the importance of a focused export strategy targeting key markets, particularly the US, as the tariff war presents new opportunities. He also called for the continuation of the Interest Equalisation Scheme, R&D support, the establishment of a globally recognized Indian shipping line, and resolution of GST-related export challenges in the upcoming Budget to ensure sustained growth.
