NEW DELHI: India’s merchandise exports fell 17% to $29.78 billion in October amid global slowdown and Ukraine-Russia crisis, commerce ministry data released on Tuesday showed. The merchandise trade deficit expanded to $26.91 billion from $25.71 billion in September.
Overall exports plummeted sequentially to $58.36 billion in October, 4.5% lower than $61.10 billion in September this year. However, exports have risen on year-on-year (YoY) basis by 4.03%. In addition, imports increased to $73 billion in October from $65.28 billion in the previous month.
Though merchandise import fell to $56.69 billion in October from $61.16 billion in September, as per the ministry data. According to commerce secretary Sunil Barthwal, global headwinds are affecting consumption globally, which would have impacted India’s exports as well. The World Trade Organisation (WTO) has stated that the worldwide trade growth will increase by 3.5% in FY22 but only 1% in FY23.
“India’s share in global merchandise trade is 1.8% and in global services, it stands at 4%. There is a lot of potential to increase this. We should not be depressed by the WTO forecast. Monetary tightening in the US and Europe is impacting demand globally,” Barthwal said. “Export slowdown has been caused both by supply and demand side factors,” said Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank.