Despite disruptions caused by Houthi attacks in the Red Sea region, India's merchandise exports soared to an 11-month high in February, reaching $41.4 billion, according to data released Friday by the Commerce Ministry.
The 11.86% year-on-year surge in exports was driven by robust performances in several key sectors. Engineering goods led the way with a 15.9% increase to $9.94 billion, up from $8.58 billion in February 2023.
Electronic goods exports surged by 54.81% to $3 billion, while exports of organic and inorganic chemicals increased by 33.04% to $2.95 billion. Additionally, exports of drugs and pharmaceutical products grew by 22.24% to $2.51 billion, and petroleum products saw a 5.08% increase to $8.24 billion.
Agricultural product exports, including tobacco, also showed strong growth, recording a 58.24% increase.
Despite the challenges posed by the geopolitical crisis in the Red Sea region, India's overall trade deficit improved by 37.80% from April-February 2022-23 to April-February 2023-24, falling to $72.24 billion. The merchandise trade deficit decreased by 8.43% to $225.20 billion during the same period.
The increase in exports comes despite the longer route now required for shipping due to the Red Sea disruptions, which has led to increased transport costs and slowed overall movement of goods.
Approximately 80% of India's goods trade with Europe, valued at nearly $14 billion monthly, typically passes through the Red Sea.
However, the current situation necessitates a detour of around 5,000 additional nautical miles via the Cape of Good Hope, extending transit time by approximately 15 days.
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