India's Merchandise Exports to Moderate in FY24: Exim Bank

Mumbai, Feb 7 (PTI) India's merchandise exports are likely to moderate to USD 435.3 billion in FY24 against 447.46 billion in FY23, the Exim Bank said on Wednesday.

The merchandise exports are set to grow by nearly 3 per cent to USD 118.2 billion in the March quarter compared to the same period a year ago.

It can be noted that the merchandise exports declined for the first two quarters of the ongoing 2023-24.

In its quarterly study on the overall exports, the policy bank said the non-oil exports will grow 4.55 per cent to USD 95 billion in the January-March 2024 quarter.

"Positive growth in India's exports could be as a result of India's strong GDP growth fundamentals and outlook and expected global easing of monetary tightening spurring global demand," the bank said in the report.

The oil exports are likely to remain subdued during the year, contracting by USD 12.5 billion compared to FY23, the bank said.

The outlook is subject to risks of uncertain prospects for advanced economies, geopolitical shocks, and the Middle East crisis, leading to the intensification of the Red Sea crisis and deepening geo-economic fragmentation, among other factors, the report noted.