ENA Sectors 2024-08-13 13:11:51 <p><span style="font-size:14px"><strong>New Delhi, Aug 13 (KNN)</strong> The Export-Import Bank of India (India Exim Bank) forecasts that the nation's merchandise exports will achieve a record USD 111.7 billion in the second quarter of fiscal year 2025, representing a 4.2 per cent year-on-year growth. This projection follows Q1 FY25 exports of USD 109.11 billion.</span></p> <p><span style="font-size:14px">Non-oil exports are expected to contribute USD 89.8 billion, marking a 6.26 per cent increase from the previous year. These figures suggest a continued upward trend in India's trade performance, supported by robust economic activity.</span></p> <p><span style="font-size:14px">The positive outlook is attributed to sustained momentum in India's manufacturing and services sectors, bolstered by government initiatives such as 'Make in India' and 'Atmanirbhar Bharat'. These programmes aim to reduce import dependency and strengthen domestic production.</span></p> <p><span style="font-size:14px">Global factors, including expectations of monetary easing and improving demand in key trading partners, are also contributing to the favourable export environment.</span></p> <p><span style="font-size:14px">The World Trade Organisation predicts global merchandise trade volume will grow by 2.5 per cent in 2024, providing a supportive backdrop for India's export activities.</span></p> <p><span style="font-size:14px">However, the India Exim Bank report highlights potential risks, including uncertain economic prospects in advanced economies, geopolitical tensions, and ongoing conflicts in West Asia.</span></p> <p><span style="font-size:14px">Global supply chain disruptions and deepening geo-economic fragmentation are also cited as potential obstacles to export growth.</span></p> <p><span style="font-size:14px">India's merchandise trade deficit, which reached a seven-month high in May, showed signs of improvement in June, decreasing to USD 20.98 billion from USD 23.78 billion.</span></p> <p><span style="font-size:14px">This figure, while lower than May's, slightly exceeded analyst expectations.</span></p> <p><span style="font-size:14px">Despite fluctuations, India's trade performance has demonstrated a strong post-pandemic recovery. Merchandise exports surpassed USD 400 billion for the first time in FY24, reaching a record USD 433.09 billion.</span></p> <p><span style="font-size:14px">The commerce ministry continues to identify new markets and diversify its export base, focusing on emerging economies in Africa, Latin America, and Southeast Asia.</span></p> <p><span style="font-size:14px">India Exim Bank's projections are based on its Export Leading Index (ELI) model. The next forecast, covering Q3 FY25, is expected in early November.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 38950 https://knnindia.co.in/news/newsdetails/sectors/indias-merchandise-exports-grow-42-to-reach-usd-112-bn-in-q2-fy25-exim-bank 2024-08-13 13:11:51 knnindia.co.in