India's Export Destinations and Trends

In February, China surpassed the Netherlands to become India's third-largest export destination, as per commerce department data.

Overall Export Performance

• India's overall exports declined by 0.81% year-on-year, totaling $36.61 billion.
• The top 10 export destinations account for over 50% of India's merchandise exports.

Key Export Destinations and Trends

• China:
   
  • Exports rose by 32.4% to $1.67 billion, primarily due to a low base.
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  • Growth likely driven by higher shipments in electronics and marine products.
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• Netherlands:
   
  • Exports fell sharply by 31.3% to $1.29 billion.
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  • The decline linked to reduced shipments of refined petroleum as India lowered imports of Russian crude oil for refining.
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• United States:
   
  • Remained India's largest export destination.
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  • Exports fell nearly 13% year-on-year to $6.89 billion.
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  • Attributed to tariff-related uncertainties and a relatively higher base from the previous year.
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• United Arab Emirates:
   
  • Exports dipped marginally by 0.3% to $3.25 billion.
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  • Considered a one-off decline.
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Other Notable Changes

• Declines in imports from India were observed in:
   
  • United Kingdom (-4.6%)
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  • Saudi Arabia (-10.4%)
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  • Bangladesh (-22.9%)
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  • Singapore (-13.7%)
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• Growth in exports was seen to:
   
  • Germany (4% increase)
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  • Hong Kong (32.1% increase)
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Future Outlook

March is expected to be challenging for merchandise exports due to logistical disruptions in the Strait of Hormuz amid the ongoing West Asia crisis, which may impact trade.

Commerce Secretary Rajesh Agrawal noted the likely impact on exports due to these logistics bottlenecks.