India’s Exports

About India’s Exports:

• Merchandise exports declined 16.7% on year in October, the first drop in 20 months and the worst slide since May 2020 when a nation-wide lockdown was imposed to contain the Covid outbreak.
• The curbs on exports of select steel products, iron ore and non-basmati rice and the ban on those of wheat to ease domestic inflation have also contributed to the export decline.
• Exports dropped below the crucial $30-billion mark for the first time since March 2021 to hit $29.8 billion. Imports, however, rose 5.7%, to $56.7 billion.
• Consequently, trade deficit inched up to $26.9 billion in October from $25.7 billion in the previous month; but it still remained lower than July’s record level of $30 billion.
• The export decline in October was rather broad-based, as 24 of the 30 key segments–including petroleum products, engineering goods, gems and jewellery, textiles and garments, chemicals and pharmaceuticals–witnessed contraction, due to an economic slowdown in key markets that started to weigh down demand.
• However, the sustained rise in imports, albeit at a slower pace, suggests domestic consumption still remains stronger than in many parts of the world.
• The World Trade Organisation (WTO) recently warned of a darkened 2023 and projected that global trade growth will drop to only 1% next year from 3.5% in 2022.

Source : Indian Express

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