India’s goods exports continued its fall in January, dropping 6.58 per cent to $32.91 billion from $35.23 billion in January 2022, as the slowdown in global demand hit sectors such as gems & jewellery, engineering goods, drugs & chemicals, textiles & garments, leather and meat products.
Imports of goods, too, declined last month, although at a lower rate of 3.53 per cent to $50.66 billion, from $52.57 billion in the same month last year, according to quick estimates issued by the Commerce department on Wednesday. Trade deficit at $17.75 billion, was almost at the same level as in January 2022.
‘Impressive exports’
In the April-January 2023 period, India’s goods exports posted a growth of 8.5 per cent to $369.25 billion while imports increased 21.89 per cent to $602.2 billion. Trade deficit in the 10-month period widened to $232.95 billion against $153.79 billion in the same period last fiscal.
India’s export growth in the said period was impressive given that FY22 exports was at a record $422 billion, said Commerce Secretary Sunil Barthwal at a media interaction.
Exports from 17 of the 30 key sectors posted a growth in the 10-month period, led by electronics, petroleum products, tobacco, chemicals, leather, marine products and pharmaceuticals.
“The growth momentum can be maintained in the remaining months of the fiscal if revival takes place in China, which is emerging from its Covid-19 restrictions and the attempts made by the governments in the US and the EU, to boost their economies, start showing results,” Barthwal said in response to a question.
Exports of iron ore had shown an increase in January after the withdrawal of export duty and this trend was expected to continue, he said.
Taking advantage
Barthwal added that in the area of petroleum products, India had taken advantage of the Ukraine conflict, by importing more crude, refining it and then exporting it. “That is why there is a strong improvement in our exports of petroleum products (this fiscal),” he said.
Moreover, services exports remained strong and was projected to grow at 31.86 per cent during April-January 2023 to $272 billion over the same period last year.
In the area of imports, 17 out of 30 key sectors exhibited a fall in January, which included silver, gold, electronic goods, pharma, machinery, leather and chemicals.
Exports of goods from India started slowing down from July last year in response to the disruptions caused by the Russia-Ukraine war and recessionary trend in several developed countries. In October, goods exports declined for the first time in the ongoing fiscal, falling 11.55 per cent to $31.6 billion. Exports rose 9.74 per cent to $34.89 billion in November and declined again in December by 3.06 per cent to $38.06 billion.