Union Commerce and Industry Minister Piyush Goyal.
| Photo Credit: ANI
India’s exports have recorded healthy growth in May and remained in the positive zone in June and the first quarter of the current fiscal despite global challenges, Commerce and Industry Minister Piyush Goyal has said.
He also said that growth in the services sector is helping the country’s outbound shipments to register positive growth rates.
“In May, exports were positive, the figure for June is also positive. The first quarter is also in the positive territory,” Mr. Goyal told PTI.
India’s merchandise exports rose 9.1% to $38.13 billion in May. During April-May this fiscal, the outbound shipments grew by 5.1% to $73.12 billion.
The Commerce Ministry will officially release the export data for June on July 15.
“Despite the ongoing two wars (Russia-Ukraine and Israel-Hamas), the Red Sea crisis, and container shortage issues, our exports are in a positive zone. One more advantage that we have is the fast pace growth in the services exports,” the Minister said.
He added that the services sector has received a boost from the government’s Digital India mission.
“The roll-out of 4G and 5G in the country too is helping the services exports of India,” Mr. Goyal noted.
Last month, the Minister stated that India’s goods and services exports are expected to cross $800 billion this fiscal despite global challenges. In 2023-24, the shipments stood at $778.2 billion (goods $437.1 billion and services $341 billion).
When asked about foreign direct investments (FDI) into the country, he said the inflows would increase once the international recessionary conditions start improving and interest rates in the U.S. and Europe start coming down.
Irrespective of this situation, India is continuously receiving FDI, he added.
The U.S. and other developed countries have high interest rates, and because of that, those markets are profitable to invest in.
The Commerce Minister added that a healthy infusion of funds by foreign portfolio investments (FPIs) in India reflects greater confidence of investors in India despite high interest rates in developed economies.
FPIs in June infused ₹26,565 crore in Indian equities, driven by political stability and a sharp rebound in markets.
FDI equity inflows in India declined 3.49% to $44.42 billion in 2023-24. Inflows during January-March FY24, however, rose by 33.4% to $12.38 billion against $9.28 billion in the year-ago period.
The total FDI — which includes equity inflows, reinvested earnings and other capital — declined marginally by one per cent to $70.95 billion during 2023-24 from $71.35 billion in 2022-23, data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed.
