Indian Merchandise Exports

In September 2024, the World Trade Organization (WTO) Goods Trade Barometer indicated a possible upturn in global trade volumes, offering hope for improved Indian exports, despite ongoing uncertainties.

Key Points

Global Trade Recovery: The WTO Goods Trade Barometer hit 103, suggesting global trade volume is picking up in the third quarter of 2024.
Indian Export Struggles: India's merchandise exports fell by 3.1% in FY24, with sectors like textiles, leather, and gems facing significant declines due to weak Western demand.
Weak European Demand: Europe’s underperformance in trade is offset by stronger growth in other regions, but inflation concerns persist, complicating economic recovery.
Surge in Shipping and Air Freight: Container shipping and air freight have surged due to disruptions from the Red Sea crisis, increasing the demand for longer shipping routes and air transport for critical goods.
Mixed Signals in Trade Components: While automotive products, shipping, and freight indices remain above trend, electronic components and new export orders are declining, signaling potential future challenges.