India's exports soared to $43.6 billion in April, marking the highest monthly level in over four years and a robust 13.8% growth—the fastest in five months—fueled primarily by higher petroleum prices, according to government data released on Wednesday.
Exports Surge on Petroleum Products
Oil product exports jumped 34.7% to $9.6 billion in April, second only to engineering goods at $10.3 billion. This rebound comes after a nearly 15% contraction in diesel, aviation fuel, and petrol exports last year, which fell below $54 billion due to muted global prices. Among top export items, only electronics saw faster growth, rising over 40% to $5.2 billion.
The surge in petroleum exports also meant that non-oil exports grew at a slower 9% in April, lagging behind the overall expansion pace for the first time in a while.
Imports and Trade Deficit
Imports rose at a more moderate pace of 9.9% to $71.9 billion, resulting in a trade deficit of $28.3 billion—a three-month high. Interestingly, imports of petroleum, crude, and products declined 10% to $18.6 billion despite a sharp rise in crude oil costs, likely due to lower LPG imports. However, the $2 billion decline in the oil import bill was more than offset by an 81.7% jump in gold imports to $5.6 billion, up from $3.1 billion a year ago, while silver imports surged from $160 million to $411 million.
Global Headwinds and West Asia Disruption
Commerce Secretary Rajesh Agrawal noted that Indian exports have registered healthy growth despite global headwinds. However, the disruption in West Asia has affected trade with the region, as oil and gas are dominant items. Exports to West Asia fell 28% to $4.2 billion in April, while imports dropped 31.6% to $10.5 billion.
When asked about the impact of a depreciating rupee on exports, Agrawal said: 'Till now it has been showing a positive trajectory, and the early signs from May also look positive.' He added that higher oil prices will not impact export competitiveness, as all countries are dealing with the issue, and Indian consumers and exporters have so far been largely insulated due to limited or no pass-through.
Government Targets $1 Trillion Exports
Agrawal also stated that the commerce department will work towards pushing overall exports, including services, to $1 trillion in the current financial year, nearly 16% higher than last year's level of $863 billion. The Rs 25,060 crore export promotion mission and free trade agreements (FTAs) will help boost shipments this year. 'New operational agreements will create opportunities for our exporters, which they are already working around to see how best we can leverage it. We are looking forward to the operationalisation of some of these FTAs in the next few months,' he said.
