NEW DELHI: India’s exports fell by 12.7% to a six-month low of $34.66 billion in April 2023, commerce ministry data showed on Monday. Meanwhile, imports also dipped by 14% on-year to USD 49.9 billion during the same period.
Interestingly, the country’s trade deficit touched a 20-month low to USD 15.24 billion from USD 18.35 billion a year ago, the data showed. According to a ministry official, exports slid majorly because of a fall in commodity prices and lukewarm demand in key markets.
“For the next two to three months, the demand doesn’t look very optimistic. We are seeing a slowdown, especially in the US and Europe. Things may change from September onwards,” said Santosh Kumar Sarangi, Director General and Additional Secretary with the Director General of Foreign Trade(DGFT) said. He further added that the sectors which may see a slowdown include gems and jewellery, apparel and garments segment, petroleum products because of low prices, and some engineering products.
He further added that the opening up of the Chinese economy will give impetus to global exports by the month of August. In addition to the above, Sarangi said, “ The world trade organization (WTO) has revised its global trade growth from 1% to 1.7%. If demand improves from the EU and US by August or so, it might give a boost to our exports.”
He further stated that in April, the total trade deficit is just $1.38 billion, the lowest in 21 months. It is to be noted that this figure also takes into account estimated services trade during April. Actual services trade data is released later by the Reserve Bank of India.
On UK-India free trade agreement (FTA), Sarangi said that the tenth round of talks will take place from 5th to 9th June in the national capital. He added that both countries are trying to conclude the deal as early as possible and the trade negotiations would not get affected by the elections in both countries.
