The Economic Survey 2024-25 was tabled in the Parliament today (January 31, 2025) after President Droupadi Murmu’s address commencing the Budget Session. The report revealed that merchandise imports grew by 5.2 per cent during April-December 2024, which was largely due to a rise in non-oil, non-gold imports, which reached USD
352.1 billion in the first nine months of FY25 compared to USD 340.5 billion during the same period last year, indicating a rebound in domestic consumption despite the inflationary impact.
The report exhibits that India’s trade sector has demonstrated remarkable stability and growth, achieving milestones despite global economic headwinds. Following a dip in FY20 amid the global downturn and the pandemic, overall exports rebounded strongly in FY22, reaching a record high in FY23. This momentum continued into FY24, with overall exports surpassing the previous year’s record, even as imports moderated slightly.
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Due to demand for safe-haven assets and frontloading ahead of festival spending, gold imports rose as a result of higher global prices. The first nine months of FY25 saw notable growth in a number of important non-oil, non-gold, non-ferrous metal, machine tool, machinery, electrical and non-electrical goods, and transport equipment imports, all of which reflect rising demand for capital goods. Additionally, electronic items continued to gain traction, indicating an increase in consumers’ discretionary expenditure. In order to boost domestic production and keep inflation under control, imports of cotton and pulses also increased.
The faster pace of increase in merchandise imports compared to exports contributed to the widening of the merchandise trade deficit to USD 210.8 billion in April-December 2024, compared to USD 189.7 billion in the same period last year.
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