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India's Export Earnings Soar Despite Lower Shipments
27 Oct
Summary
- Petroleum export earnings rose nearly 50% in rupee terms.
- Diesel exports were the largest contributor to earnings growth.
- Domestic consumption rose while production slightly declined.
India's revenue from petroleum product exports experienced a significant surge of almost 50% in rupee terms, amounting to ₹2.59 lakh crore between April and September. This impressive growth was achieved despite a 16% reduction in the volume of exported products. The primary drivers behind this financial uplift were elevated international fuel prices and the depreciation of the Indian rupee against the US dollar.
Diesel played a crucial role in this earnings expansion, accounting for a substantial portion of the revenue increase. Despite a 19% dip in export volume, diesel earnings escalated by 58% in rupee terms. Petrol exports also contributed positively, with earnings rising 21% in rupee terms, though volumes fell by 24%.
The decrease in export volumes reflects a tightening domestic surplus. Over the six months to September, consumption of diesel and petrol grew by 5% and 7%, respectively. Concurrently, production of these fuels experienced marginal declines of 0.3% for diesel and 0.8% for petrol, leaving less available for overseas markets.
