India's gross domestic product (GDP) at current prices in the second quarter (Q2) of 2023-24 is estimated to be Rs. 71.66 trillion (US$ 861.2 billion), as against Rs. 65.67 trillion (US$ 789.2 billion) in Q2 of 2022-23, showing a growth rate of 9.1%.
India’s overall exports during April-November 2023 were estimated at US$ 499.46 billion. India's overall exports in FY23 (April-March 2023) increased by 13.84% to US$ 770 billion.
India’s overall exports in November 2023 were estimated to be US$ 62.58 billion and the overall imports in November 2023 were estimated to be US$ 67.88 billion. India’s merchandise exports exhibited a positive (y-o-y) growth in 15 out of 30 sectors in November 2023 as compared to the same period last year and imports exhibited a negative growth in 15 out of 30 sectors (y-o-y) in the same period. Among the commodity groups, exports of iron ore (2207.38%), Fruits & Vegetables (31.14%), Meat, Dairy & Poultry Products (19.91%), Oil Meals (17.22%), Mica, Coal & Other Ores, Minerals Including Processed Minerals (16.62%), Gems & Jewellery (11.97%), Spices (11.3%), Coffee (11%), Drugs & Pharmaceuticals (7.33%), Cotton Yarn/ Fabs. /Made-Ups, Handloom Products Etc. (6.33%), Cereal Preparations & Miscellaneous Processed Items (5.9%), Carpet (4.22%), Ceramic Products & Glassware (2.17%), Handicrafts Excl. Hand Made Carpet (1.17%) and Electronic Goods (1.09%), registered growth (y-o-y) in November 2023.
As of December 29, 2023, foreign exchange reserves in India stood at US$ 551.6 billion.
Recent developments in the external sector are as follows:
Recent developments in foreign trade policy are as follows:
India is presently known as one of the most important players in the global economic landscape. Its trade policies, Government reforms, and inherent economic strengths have contributed to its standing as one of the most sought-after destinations for foreign investments in the world. India's Production-Linked Incentive (PLI) schemes have emerged as a catalyst for improving the trade balance by fostering domestic manufacturing. These initiatives, spanning sectors like electronics, pharmaceuticals, and textiles, incentivize companies to enhance production capabilities. The resultant increase in manufacturing not only meets domestic demand but also positions India as a competitive exporter. By reducing import dependency and promoting the export of value-added goods, the PLI schemes contribute significantly to narrowing the trade deficit. This strategic shift aligns with India's goal of becoming self-reliant and underscores the pivotal role of targeted incentives in bolstering the country's trade dynamics. Also, technological, and infrastructural development being carried out across the country augurs well for the trade and economic sector in the years to come. The Government of India has been working on striking important deals with the European Unions and Governments of various countries to increase contribution towards the economic development of the country and growth in the global market. Significant changes to foreign trade policy such as enabling payment and settlement in the Indian Rupee and opening of special rupee Vostro accounts supported by Indian banks will bring ease to international trade transactions. With more than 35 countries expressing interest in this mechanism, the long-term aim is to internationalize the rupee and reduce the depreciation of the domestic currency against the dollar.
Note: Conversion rate used for January 2024 is Rs.1 = US$ 0.012