India's Exports Grows Despite of Red Sea Crisis

Despite of Red Sea Crisis and economic troubles in the West, India exported more goods to other countries in January 2024 compared to the same time last year. The value of goods India exports went up by 3.12 %, reaching $36.92 billion. This was helped by selling more electronics, machines, and medicines.

However, India also bought more things from other countries. The amount spent on imports increased by 2.99 %, totaling $54.41 billion in January 2024. The main things bought were crude oil, electronics, coal, and gold.

So, the trade deficit, which is the difference between what India exports and what it imports, was $17.49 billion in January 2024. This was a bit higher than the $17.03 billion deficit in January 2023.

The Commerce Secretary, Sunil Barthwal, praised Indian exporters for their hard work despite tough times. He said that even though there were problems in the Red Sea and economic issues in the West, India's export growth was significant.

Between April 2023 and January 2024, the total value of exports decreased by 4.89 % to $353.92 billion. Imports also decreased by 6.71 % to $561.12 billion during the same period. This led to a smaller trade deficit of $207.20 billion compared to the previous year.

Exporters are worried that if the situation in the Red Sea doesn't improve, things could get worse. They say they're still fulfilling old orders even though shipping costs are high. They hope that new agreements with buyers in the upcoming fiscal year will help ease their burden.

Because of the long route to Europe and the US East Coast through the Cape of Good Hope, shipping costs have become very expensive. As a result, about 25 % of the goods that Indian exporters send through the Red Sea are being delayed.

Some exporters in Delhi mentioned that when they make new deals, they might start sending goods to countries like Kenya and South Africa instead, which aren't affected by the Red Sea Crisis.

The Commerce Secretary is hopeful that export growth will continue in the future. His department is working with exporters, relevant ministries, and others to deal with the Red Sea problem.

"We've also asked banks to offer as much credit as possible to our exporters during this time. Exim Bank and ECGC were instructed not to increase insurance costs. Creating this positive environment has helped boost export growth," he said.

In conclusion, navigating through challenges like the Red Sea crisis and economic fluctuations, India's export-import industry remains resilient and adaptable. With strategic efforts from government bodies like the Commerce Department and support systems in place for exporters, there's optimism for sustained growth in the coming months.

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