India's exports surge, outpacing Asian Peers in Oct 2023: ICICI Securities report

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India's exports surge, outpacing Asian Peers in Oct 2023: ICICI Securities report

India's exports surge, outpacing Asian Peers in Oct 2023: ICICI Securities report

Industry News
Dec 04,23

Analysts and economists Prasenjit Basu and Laavanya Sisaudia from ICICI Securities anticipate a further acceleration in India's merchandise exports throughout the remaining fiscal year 2024.

India's exports surge, outpacing Asian Peers in Oct 2023: ICICI Securities report

In October 2023, India witnessed a 6.2% year-on-year increase in merchandise exports, showing a recovery of 2.4% during the August-October 2023 period, outpacing the rest of Asia, according to a report from ICICI Securities. South Korea experienced a positive shift with a 5.1% year-on-year growth in exports in October 2023, breaking a 13-month contraction streak. Taiwan's exports also showed resilience, declining only 2.8% year-on-year in August-October 2023, despite a 12.8% decrease in January-October 2023. China, however, saw a decline of 8.2% in goods exports during August-October 2023, worse than its 5.2% contraction in January-October 2023, mirroring India's 4.9% year-on-year decline for the same period.

Analysts and economists Prasenjit Basu and Laavanya Sisaudia from ICICI Securities anticipate a further acceleration in India's merchandise exports throughout the remaining fiscal year 2024 and into fiscal year 2025. They attribute this optimistic outlook to the broad-based cyclical rebound in engineering goods, textiles, and pharmaceutical exports.

Despite weakened US import demand in January-September 2023, there is now a rebound from the troughs. This recovery is notable even as the overall US economy shows signs of weakening. The analysts expect that this rebound in US and OECD demand will positively impact Asia's exports, including those of India.