India’s ready-made garment exports surged by 12% in August to USD 1.26 billion, despite global challenges. From April to August 2024-25, exports grew by 7.12% to USD 6.39 billion. AEPC Chairman Sudhir Sekhri credits the growth to product quality and compliance, with hopes for continued momentum through policy support and strategic realignment.
Ready-made garment exports rise 12% in Aug despite global challenges
Six countries, including the US, UK, and Japan, have asked India about its plans to lift or ease the ban on non-basmati white rice exports. At the WTO, Japan also inquired about India’s electricity subsidy for farmers. Over 40 questions have been posed to India regarding its export restriction measures since 2022.
The government is considering lifting the ban on exporting certain non-basmati rice varieties, according to Food Secretary Sanjeev Chopra. The export ban on non-basmati white rice has been in place since July 20, 2023, to boost domestic supply. Chopra noted that there is ample stock and retail prices are under control.
India has allowed the import of fresh green areca nut from Bhutan without a minimum import price condition through additional land customs stations in Odisha and Assam. This follows the government’s 2022 decision to permit the annual import of 17,000 tonnes of green areca nut from Bhutan, bypassing the earlier price restriction.
Commerce and Industry Minister Piyush Goyal announced that India’s exports of goods and services are expected to surpass $825 billion despite global challenges. The ministry is addressing container shortages and high freight rates. Plans include opening offices abroad to facilitate foreign investment and trade, making it easier to do business in India.
India’s diamond sector is in crisis with a sharp decline in imports and exports over the past three years, leading to defaults, factory closures, and job losses. A significant inventory of unprocessed rough diamonds is piling up due to reduced orders and competition from lab-grown diamonds, exacerbating the situation.
India’s trade gap surged to a 10-month high of $29.65 billion in August due to declining exports and record gold imports. Commerce Secretary Sunil Barthwal cited global economic challenges but emphasized strong domestic consumption and growth in non-petroleum sectors, indicating that the high trade deficit is not currently a major concern.
India’s exports to China fell by 22.44% to USD 1 billion in August, while imports rose by 15.55% to USD 10.8 billion, resulting in a trade deficit. Exports to other countries like the US and UAE also declined, while imports from several nations increased.
The commerce ministry has introduced several measures to support MSME exporters facing global challenges. These include the launch of the ‘Trade Connect e-Platform’ and an e-commerce export hub, enhanced insurance cover, and reduced compliance burdens. The initiatives aim to boost India’s share in the global e-commerce market and improve access to key international markets.
India’s exports contracted by 9.3 per cent in August due to Red Sea disruptions and logistical challenges, with petroleum product exports dropping 37.56 per cent. The trade gap widened to USD 29.65 billion. Exporters face issues like lack of shipping space and irregular schedules. Measures like extending the RoDTEP Scheme are suggested to support exporters.