India's Merchandise Exports Set to Rise Amid Global Challenges

The Export Import Bank of India forecasts a 3.3 percent increase in India's merchandise exports, projecting a total of USD 113.7 billion in the June quarter. Non-oil exports are expected to surge by 10.9 percent to reach USD 99.2 billion, according to an official statement released on Thursday.

The bank warned that these projections are susceptible to global tariffs, trade policy uncertainties, rising geo-economic fragmentation, and ongoing geopolitical tensions. However, the positive outlook could be bolstered by a revival in manufacturing, securing export orders, promising trade negotiations, and an accommodative stance in India.

Looking towards the future, the bank anticipates that the growth in merchandise, non-oil, and non-gems and jewellery exports will persist into the second quarter. To assist in this, they have developed an export leading index to monitor and forecast quarterly export trends, taking into account various factors impacting the nation's export performance.

(With inputs from agencies.)