India's gross domestic product (GDP) at Current Prices for Q1 2024-25 is estimated at Rs. 77.31 lakh crores (US$ 928.9 billion) with growth rate of 9.7%, compared to the growth of 8.5% for Q1 2023-24. Real GDP has been estimated to grow by 6.7% for Q1 2024-25 over the growth rate of 8.2% in Q1 2023-24.
During the period of April-September 2024, India’s exports stood at US$ 211.46 billion. Contribution by different commodity groups, are engineering goods (26.57%), petroleum products (16.51%), electronic goods (7.39%), drugs and pharmaceuticals (6.82%), organic and inorganic chemicals (6.67%), etc. during April-September 2024.
As of October 11, 2024, India’s foreign exchange reserves stood at US$ 690.43 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 September 2024 is Rs.1 = US$ 0.012