India’s goods exports rose for the third successive month this June, growing 2.55% to $35.2 billion.
Imports grew 5% to $56.2 billion, receding from May’s seven-month peak of nearly $62 billion.
The trade deficit, despite rising 9.4% from last June, has cooled slightly from the previous month
The oil deficit, which had hit a record $13 billion in May, remains a worry despite narrowing to $10 billion
The value of gold imports fell 38.7% in June to $3.06 billion, the lowest so far in 2024-25.
But silver imports, which have been rising sharply, jumped 377% in June.
The government must investigate concerns about disruptions in India’s bullion market due to concessional duty imports through the GIFT City under the free trade pact with the United Arab Emirates.
The import bill, beyond oil and gold, has risen about 3% so far this year, with growth accelerating to 7% in June, indicating a recovery in discretionary domestic demand — a good omen for the economy.
Waning global inflation, and likely interest rate cuts can fuel demand, and the IMF has raised its trade volume growth hopes to 3% in 2024 from 0.3% last year
For exporters to fully tap this opportunity, and create more jobs in the process, the Centre must provide adequate resources as well as certainty for the sector, be it for the duty remission scheme or interest equalisation scheme
Sudden policy shifts such as the recent scrapping of the latter scheme for all exporters, except for smaller firms (which have been promised support for only two more months), are certainly avoidable
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