NEW DELHI: India’s exports fell year-on-year (YoY) for the third straight month to $ 33.88 billion in February, according to the commerce ministry data. Goods exports declined by 8.8% on yearly basis as compared with 6.58% fall in the previous month. According to the ministry, export of textiles, petroleum products and plastic & linoleum witnessed a massive decline in February because of subdued demand on account of recessionary effects in major economies.
However, sequentially, the merchandise exports have increased as they stood at $32.91 billion in January. Commodities that recorded noticeable growth include electronics, gems & jewellery, drugs & pharmaceuticals, iron ore, rice, oil and other cereals. In addition, imports declined by 8.21% to $51.31 billion as against $55.9 billion recorded in the corresponding month last year. Items that registered growth in imports include fruits & vegetables, coal, wood, chemicals, plastic and iron & steel, among others. Import of commodities like gold and silver fell massively in February 2023.
Speaking about the April-February period of this fiscal, the overall merchandise exports surged 7.5% to $405.94 billion. Also, imports during the same period increased by 18.82% to $653.47 billion. Meanwhile, the trade deficit narrowed to an 18-month low of $17.43 billion in February 2023, as compared with $18.75 billion in the year-ago period.
Commerce secretary Sunil Barthwal briefing the media said, “going by the trend, India’s goods and services exports will cross $750 billion in FY23. We have kept the momentum despite the global headwinds. Exporters have kept the momentum. Services exports are doing very well. The trade deficit has actually come down. Hopefully, we will be doing better.”
He added that the ministry has begun the exercise of setting the target for the next financial year too.
“Exports of pharmaceuticals, gems & jewellery have posted remarkable growth in February, despite an 8.8% decline in overall merchandise exports during the month…Monthly trade has been falling due to a slowdown in imports, which will help us in ending the current financial year with a manageable level of current account deficit,” said Vijay Kalantri, Chairman, MVIRDC World Trade Centre, Mumbai.