Wednesday, 09 Oct, 2024
By: Yash Gupte
India’s overall exports (Merchandise and Services combined) in April-July 2023 are estimated to be $244.15 Billion, exhibiting a negative growth of -5.98 percent over April-July 2022. Image Source: IANS
The merchandise exports have dropped from $38.34 billion in July 2022 to $32.25 billion in May 2023. Talking about the service exports made by the country, it registered a slight positive growth as New Delhi exported more services in July 2023 as compared to the same month in 2022.
According to the latest data released by the Ministry of Commerce and Industry, India’s overall exports (Merchandise and Services combined) in the month of July 2023 decreased by around 5.06 percent year-on-year from $62.59 billion in July 2022 to $59.43 billion in July 2023. India’s merchandise exports in the month of July 2023 stood at $32.25 billion. The merchandise exports have dropped from $38.34 billion in July 2022 to $32.25 billion in May 2023. Talking about the service exports made by the country, it registered a slight positive growth as New Delhi exported more services in July 2023 as compared to the same month in 2022. Coming over to the imports, the value of overall imports in July 2023 was $67.77 billion, exhibiting a negative growth of -12.92 percent over July 2022. India had imported goods and services worth $77.83 billion in July 2023.
Talking about New Delhi’s merchandise trade deficit, it improved by 18.74 percent at $20.67 billion in July 2023 as compared to $25.44 billion in July 2022.
India’s overall exports (Merchandise and Services combined) in April-July 2023 are estimated to be $244.15 Billion, exhibiting a negative growth of -5.98 percent over April-July 2022. Overall imports in April-July 2023 are estimated to be $272.41 Billion, exhibiting a negative growth of -11.09 percent over April-July 2022.
Source: Ministry of Commerce and Industry
The month of December registered the highest exports of goods and services. December 2022 recorded exports worth $69.32 billion, highest in the previous financial year followed by June 2022 when the exports were recorded at $69.21 billion. On the other hand, the lowest exports worth $56.97 billion were recorded in the month of October. India’s total exports in the month of March 2023 stood at $66.14 billion. Though India’s total exports increased in the month of March to $66.14 billion from $63.02 billion in February, the exports in March 2023 declined by 7.53 percent as compared to March 2022. India’s total exports in the month of March 2022 stood at $71.52 billion. Talking about April 2023, India’s total exports stood at $65.02 billion. In May 2023, India’s overall exports (Merchandise and Services combined) decreased by around 6 percent year-on-year from $64.13 billion in May 2022 to $60.29 billion. Coming over to July 2023, India’s exports dropped from $62.59 billion in July 2022 to $59.43 billion.
Overall Trade in July 2022 and July 2023 (In USD Billion)
Source: Ministry of Commerce and Industry
India’s trade performance, after witnessing very strong growth in 2022-23 has shown declining trends as compared to high base of last year as the pace of growth in global merchandise exports moderated significantly in 2023, as persisting geopolitical tensions and monetary tightening induced recessionary fears have led to a decline in consumer spending across advanced nations. But despite global headwinds and uncertainties, India’s overall trade deficit has improved by 45.22 percent during July 2023 to $8.35 billion from $15.24 billion in July 2022. Also, the overall trade deficit during the period from April-July 2023 has improved as compared to the same period in the last year. New Delhi’s trade deficit during April-July 2023 is $28.26 billion as compared to $46.72 billion from April-July 2022.
Merchandise Trade in July 2022 and July 2023 (In USD Billion)
Source: Ministry of Commerce and Industry
Merchandise exports in July 2023 were $32.25 Billion, as compared to $38.34 Billion in July 2022 whereas the Merchandise imports in July 2023 were $52.92 Billion, as compared to $63.77 Billion in July 2022. Talking about the April-July 2023 period, the merchandise exports were $136.22 billion as against $159.32 during April-July 2022. Merchandise imports for the period April-July 2023 were $213.20 Billion as against $247.31 Billion during April-July 2022. The merchandise trade deficit for April-July 2023 was estimated at $76.98 Billion as against $87.99 Billion during April-July 2022.
When it comes to merchandise exports, only 11 of the 30 major industries experienced an increase in July 2023 over the same month in the previous year. These include Iron Ore (962.82 percent), Oil Meals (34.24 percent), Oil Seeds (32.83 percent), Ceramic Products and Glassware (20.82 percent), Fruits and Vegetables (18.94 percent), Electronic Goods (13.09 percent), Coffee (11.90 percent), Handloom Products (6.62 percent), Rice (5.38 percent), Cereal Preparations (2.56 percent) and Drugs & Pharmaceuticals (0.09 percent).
Non-petroleum and non-gems & jewellery exports in July 2023 were $25.35 Billion, compared to $26.89 Billion in July 2022. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in July 2023 were $35.65 Billion, compared to $38.55 Billion in July 2022.
Service Trade in July 2022 and July 2023 (In USD Billion)
Source: Ministry of Commerce and Industry
India's merchandise trade deficit increased to $266.78 billion in the fiscal year that ended in March 2023 from $191.05 billion the year before as import costs rose as a result of rising petroleum product prices and exports remained weak due to global headwinds. Under merchandise exports, 17 of the 30 key sectors exhibited positive growth during FY 2022-23 (April-March) as compared to FY 2021-22 (April-March). These include Oil Meals (55.13 percent), Electronic Goods (50.52 percent), Petroleum Products (40.1 percent), Tobacco (31.37 percent), Oil Seeds (20.13 percent), Rice (15.22 percent), Coffee (12.29 percent), Fruits & Vegetables (11.19 percent), Other Cereals (9.74 percent), Tea (8.85 percent) and etc.
The estimated value of services export for April-July 2023 is $107.93 Billion as compared to $100.35 Billion in April-July 2022. The estimated value of services imports for April-July 2023 is $59.21 Billion as compared to $59.09 Billion in April-July 2022. The services trade surplus for April-July 2023 is estimated at $48.72 Billion as against $41.27 Billion in April-July 2022.
The country’s service trade in FY2022-23 was recorded at $322.72 billion as compared to $254.53 billion in FY2021-22. In case of import of services, in FY2022-23 services worth $177.94 were imported as compared to $147.01 billion in FY2021-22. The data clearly indicates that the trade of services is extremely beneficial for India as the India has a trade surplus in case of services unlike the merchandise. In case of merchandise, India has been experiencing a trade deficit whereas in the case of service trade, it has been recording a trade surplus of $144.78 in FY2022-23 as against $107.52 billion in FY2021-22.
Aditi Nayar, Chief Economist and Head Research and Outreach, ICRA Ltd said, "The merchandise trade deficit printed in line with expectations in July 2023, with the YoY (year-on-year) decline in commodity prices compressing exports, imports as well as the trade deficit."
Commenting on the latest exports statistics, Dr A Sakthivel, resident, Federation of Indian Export Organisations (FIEO) said “sluggish global demand especially in economies like China and European Union (EU) coupled with the contraction in growth has led to the continuous decline in exports during the recent months. Manufacturing across the Euro Zone and the US has contracted due to persistent policy tightening measures by both the US Federal Reserve and the European Central Bank squeezing finances with also Britain's pace of decline steepening as optimism faded.”
India’s overall exports (merchandise and services combined) rose by 13.84 per cent year-on-year to $770.18 billion in 2022-23. Overall imports rose at a sharper pace of 17.38 per cent to $892.18 billion. India’s overall trade deficit widened to $122 billion in 2022-23 as against $83.53 billion in the previous year. Considering the rising trade deficit, the Union government is considering a number of actions. India wants to reduce the amount of inexpensive, non-essential imports through quality control orders (QCOs) and to replace imports with domestic manufacturing by rewarding manufacturers through PLI programmes. By investigating its export potential in fintech, the financial services industry, transportation, accounting, and legal services, the government is attempting to enhance India's exports of services from the non-IT sector. India is aiming to establish FTAs and lower tariffs with countries that have a significant market for Indian textiles, but it is also talking with SEZs about how to use their built-up space to enhance services in rural areas.
