NEW DELHI: The country’s exports saw a modest 1% increase in December, 2023, totalling $38.45 billion, while the trade deficit shrank to a three-month low of $19.8 billion, as per commerce ministry data released on Monday.
The decrease in imports by 4.85% to $58.25 billion was primarily due to a decline in crude oil shipments.
Crude oil imports fell by 22.77% to $15 billion during the same period. However, gold imports surged by 156% to $3 billion in December 2023, marking a substantial increase. However, the overall scenario for the fiscal year April-December 2023 witnessed a 5.7% drop in exports, amounting to $317.12 billion, while imports contracted by 7.93% to $505.15 billion, resulting in a trade deficit of $188.02 billion.
Commerce Secretary Sunil Barthwal during a press conference said that despite the global economic slowdown, India has maintained a positive trade balance with reduced trade deficit. Notably, the ongoing demand slowdown in Western countries and geopolitical tensions have impacted the struggling exports.
Key sectors such as petroleum products, ready-made garments, chemicals, and leather products experienced negative growth, while plastic, electronic goods, engineering items, and gems and jewellery remained in the positive zone. In addition, the estimated value of services exports contracted to $27.88 billion in December 2023, but witnessed a rise to $247.92 billion during the nine-month period.
Despite the Red Sea crisis, the ministry assured that there is no strain on container availability, as additional fleets have been enlisted to maintain revised schedules. Nevertheless, officials cautioned that the collective effect of escalated freight costs, insurance premiums, and extended transit times could substantially inflate prices of imported goods. Commerce secretary Sunil Barthwal during the conference emphasised that exporters are holding back consignments due to heightened freight charges and surcharges imposed by shipping lines, as indicated by the export promotion council during a press conference in New Delhi.
Red Sea crisis impact
Despite the Red Sea crisis, the ministry assured that there is no strain on container availability, as additional fleets have been enlisted to maintain revised schedules