India’s merchandise exports rose to USD 38.5 billion in December, signaling a gradual recovery in external trade amid a challenging global environment. The improvement reflects better performance across select manufacturing and engineering segments, supported by stabilizing global demand and improved supply-chain conditions. Trade experts note that while geopolitical uncertainties and uneven growth in major economies continue to pose risks, India’s diversified export base is providing resilience. The December uptick offers cautious optimism for exporters after a period of volatility, highlighting the impact of policy support, currency movements, and renewed overseas orders on the country’s trade performance.
December Export Performance
India’s export shipments showed a noticeable improvement in December, reaching USD 38.5 billion compared with subdued levels in preceding months. The rise was driven by stronger dispatches in sectors such as engineering goods, pharmaceuticals, and select consumer products.
Exporters benefited from easing logistical constraints and improved turnaround times, which helped fulfill pending international orders.
Sectoral Drivers and Demand Trends
Engineering goods and value-added manufacturing products were among the key contributors to the export growth. Demand from traditional markets showed signs of stabilization, while shipments to emerging economies helped offset weakness in select developed regions.
Pharmaceutical and chemical exports remained steady, supported by consistent global demand and India’s competitive cost structure.
Global Trade Environment
The global trade landscape remains mixed, marked by slower growth in major economies, inflationary pressures, and geopolitical tensions. Despite these challenges, India’s export sector has demonstrated adaptability through market diversification and a focus on higher-value products.
Currency movements and softer commodity prices also played a role in supporting export competitiveness during the month.
Policy Support and Export Strategy
Government initiatives aimed at boosting manufacturing and exports, including incentives for production-linked sectors, have contributed to improved trade momentum. Export promotion measures and infrastructure upgrades continue to support long-term competitiveness.
Industry bodies emphasize the importance of expanding market access and improving trade facilitation to sustain growth.
Outlook
The December rebound to USD 38.5 billion suggests a stabilizing trend for India’s exports, though sustained momentum will depend on global economic conditions. Analysts expect moderate growth in the near term, supported by diversification efforts, policy continuity, and gradual recovery in international demand.
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