India's export of key items sees double-digit contraction, says report

Data released by the commerce department on Monday showed that outbound shipments from India shrank at the sharpest pace in 20 months-by 10.9 per cent on-year--to $36.91 billion in Feb

India's export of key items such as petroleum products, iron ore, gems and jewellery, oil seeds, and ceramics witnessed double-digit contraction in February, which calls for ‘targeted support and strategic interventions’ to drive recovery, Delhi-based think tank GTRI said in a report on Wednesday.

 

Data released by the commerce department on Monday showed that outbound shipments from India shrank at the sharpest pace in 20 months —by 10.9 per cent year-on-year (Y-o-Y) — to $36.91 billion in February.

 

The contraction was driven by negative growth in several items.

 

Exports of petroleum products fell by 29.2 per cent in February. Exports contracted by a fourth during the 11 months of the current financial year, mainly due to softening of global crude oil prices from $83.5 per barrel in February 2024 to $77 per barrel in February 2025.

 

“A recovery in this sector will depend on global oil price trends and increased refining efficiency to maintain margins,” the report said.

 

In the case of gems and jewellery, the contraction was over a fifth in February and more than a 10 per cent drop during April-February.

 

The sector was hit by tepid demand and high import duties on gold. According to GTRI, shifting consumer preferences and increased local production in key importing countries also contributed to the decline.

 

Similarly, iron ore exports were also hit by tepid demand, along with domestic mining restrictions. Exports saw a sharp decline of 53.6 per cent in February and 49.4 per cent in April-February.

 

“To address this, the government should speed up mining approvals to stabilise production and encourage value-added exports such as processed steel and alloys instead of raw iron ore,” it said.

 

While export of items such as engineering goods, pharmaceuticals, plastics, organic and inorganic chemicals, leather, cotton yarn, fabrics, tea and cashew, among others, also saw contraction in February, but grew on a cumulative basis (April-February). This indicates short-term challenges but long-term resilience. “These exports made up 47.6 per cent of total exports in February, indicating short-term challenges but long-term resilience,” it said.

 

On the brighter side, electronic goods, ready-made garments, rice, meat, dairy and poultry products, mica, coal and other minerals, coffee, tobacco, spices, fruits and vegetables, carpet, and jute manufacturing saw steady growth in February.

 

The trend is expected to continue in the long run, the report said.