Business News | Trade Agreements, New Markets Contribute to Robust Export Growth in 2024
India is significantly enhancing its trade through Free Trade Agreements (FTAs) and leveraging these agreements to ensure certainty in market access, non-discriminatory treatment, and a transparent and objective regulatory environment for services exports.
Recent trade agreements and the exploration of new markets have contributed to robust export growth in 2024, according to the Year End Review of the Department of Commerce.
India has established bilateral trade agreements, including Trade in Services, with countries such as Singapore, South Korea, Japan, Malaysia, Mauritius, UAE, and Australia, along with an FTA in services and investment with the Association of Southeast Asian Nations (ASEAN). Notably, the India-EFTA Trade and Economic Partnership Agreement (TEPA) was signed in March 2024.
Ongoing FTA negotiations include discussions with the UK, the EU, Oman, Peru, and Sri Lanka, focusing on Trade in Services. India is also negotiating a Comprehensive Economic Cooperation Agreement (CECA) with Australia, a continuation of the market access commitments in Trade in Services under the India-Australia Economic Cooperation Trade Agreement (ECTA).
The objective of these FTA engagements is to assure certainty in market access, promote non-discriminatory treatment, and foster a transparent and objective regulatory environment for services exports. Beyond these agreements, India is initiating various other bilateral and multilateral trade agreements in both goods and services with multiple countries and associations.
Discussions are ongoing concerning the conclusion of the ASEAN India Trade in Goods Agreement (AITIGA) Review negotiations, planned for 2025.
India’s total exports during the period from April to October 2024 demonstrated a positive growth rate of 7.3 percent. Overall exports (comprising both merchandise and services) reached USD 468.5 billion, compared to USD 436.5 billion during the same period in 2023.
Total imports (merchandise and services) during April-October 2024 were reported at USD 531.6 billion as opposed to USD 496.5 billion in the previous year, marking a growth of 7.1 percent.
Agriculture, engineering, electronics, drugs, and pharmaceuticals were among the key sectors showing healthy growth in exports. India’s leadership in traditional exports has been reinforced, particularly in labor-intensive sectors, alongside expansion into new areas. Agricultural and allied products exports during April-October 2024 achieved USD 27.84 billion, up from USD 26.90 billion during the same timeframe in 2023.
Spices exports saw substantial growth, increasing from USD 2.4 billion in the fiscal year 2013-14 to USD 4.2 billion in 2023-24. For the period April-October 2024, these exports were USD 2.47 billion, compared to USD 2.24 billion from April-October 2023, marking an increase of 10 percent.
Basmati rice exports grew from USD 4.8 billion to USD 5.8 billion, with non-basmati rice exports rising significantly from USD 2.9 billion to USD 4.6 billion. In the period of April-October 2024, basmati rice exports stood at USD 3.38 billion, compared to USD 2.96 billion in the same period the previous year, reflecting a growth rate of 14.28 percent.
