A faster growth of 19.12% in imports to $64.91 billion, though, led to a five-month high trade deficit of $26.42 billion in April compared with $21.54 billion in March.
“We opened FY26 with a bang,” commerce secretary Sunil Barthwal said, adding that the country would maintain this export momentum this fiscal despite all the external factors.
The country’s exports had grown 17.2% on year in October 2024, but fell for the next four months in a row. They rose 0.67% in March. The trade deficit last month was the highest since November 2024.
Exports to the US rose to $8.42 billion last month from $6.61 billion in April 2024.
On the impact of 10% American tariffs on India’s exports, officials said the outbound shipments got a boost because of higher tariffs on China, which made Indian goods more competitive. “It is premature to say what were the factors but prima facie, it looks like the differential tariffs across the world played a part,” an official said. The outbound shipments of electronics including smartphones and engineering goods rose 39.51% and 11.28% to $3.69 billion and $9.51 billion, respectively.
Exports to the UAE, China and Australia also rose in April. Crude oil imports in April increased 25.6% to $20.7 billion while gold imports were up by 4.86% to $3.09 billion.
“The increase in imports, particularly of capital goods and energy inputs, reflects improving domestic demand and capacity expansion,” said SC Ralhan, president of Federation of Indian Export Organisations (FIEO).
Apparel Export Promotion Council (AEPC) Secretary General Mithileshwar Thakur said India’s apparel exports grew 14.43% despite ongoing global economic challenges, currency fluctuations and the uncertainty surrounding US reciprocal tariff policy.
Barthwal said exporters have achieved resiliency in their businesses.
Content Source: economictimes.indiatimes.com