India’s exports and imports both declined in January, according to the latest data released by the Ministry of Commerce and Industry. Merchandise exports dropped by 6.58 per cent to $32.91 billion, and imports contracted by 3.63 per cent to $50.66 billion. This resulted in a trade deficit of $17.75 billion, which is the lowest in a year.
Total exports (merchandise and services combined) in January 2023 are estimated to be $65.15 billion, up 14.58% on year. Meanwhile, overall imports are estimated to be $66.42 billion, up 0.94% on year. April-January 2022-23 has seen an overall exports growth of 17.33 per cent and imports growth of 22.92 per cent.
Non-oil domestic exports (NODX) for January fell by a sharper 25 per cent from a high base a year ago. In January, exports not held by oil went down by 10.4%, following the 7.2% decrease that occurred in December.
Engineering goods, iron ore, plastic and linoleum, and gems and jewellery export sectors all experienced a decline in growth during the 10 months of this fiscal year. Key sectors that showed negative growth in exports in January are cotton yarn, fabrics, made-ups, handloom products, etc (-37.42%), man-made yarn/fabrics/made-ups (-21.12%), gems and jewellery ((-19.28%), drugs and pharmaceuticals (-2.62%), organic and inorganic chemicals (-4.57%), engineering goods (-9.8%) and meat dairy and poultry products (-13.27%).
Between April and January this fiscal year, gold imports dropped by 11.26 percent to $29 billion, compared to $40.35 billion during the same period in the previous year. Crude oil imports for the 10-month period of the current fiscal grew by 53.54%, reaching a total of $178.45 billion. Similarly, imports of coal, coke and briquettes rose by 18.91 per cent to $43.17 billion.
Commerce Secretary Sunil Barthwal is optimistic about the country's export growth momentum continuing despite strong global headwinds. Oxford Economics senior economist Alex Holmes commented that the “worst is likely not over for Singapore's export sector. We continue to expect further falls in global demand.
0. “India’s overall exports log 14.57% growth in January 2023, climb to $65.15 billion” Firstpost, 15 Feb. 2023, https://www.firstpost.com/business/indias-overall-exports-log-14-57-growth-in-january-2023-climb-to-65-15-billion-12160442.html
1. “India's Exports Dipped By 6.58 Per Cent To $32.91 Billion In January” Swarajya, 15 Feb. 2023, https://swarajyamag.com/business/indias-exports-dipped-by-658-per-cent-to-3291-billion-in-january
2. “India's Trade Deficit Widened Slightly on Year as Trade Flows Declined” MarketWatch, 15 Feb. 2023, https://www.marketwatch.com/story/india-s-trade-deficit-widened-slightly-on-year-as-trade-flows-declined-5f6b7cbd
3. “Exports in slow lane, down 6.6%” msnNOW, 16 Feb. 2023, https://www.msn.com/en-in/money/markets/exports-in-slow-lane-down-66percent/ar-AA17xvO1
4. “Singapore Posts Worst Non-Oil Domestic Exports in a Decade” NBC Chicago, 17 Feb. 2023, https://www.nbcchicago.com/news/business/money-report/singapore-posts-worst-non-oil-domestic-exports-in-a-decade/3075171
5. “Exports dip by 6.58% in Jan; trade deficit lowest in 12 months” Rediff.com, 15 Feb. 2023, https://www.rediff.com/business/report/indias-exports-in-january-dipped-by-658/20230215.htm
6. “Exports dip by 6.58 per cent in January; trade deficit lowest in 12 months at USD 17.75 billion” The Tribune India, 15 Feb. 2023, https://www.tribuneindia.com/news/business/exports-dip-by-6-58-per-cent-in-january-trade-deficit-lowest-in-12-months-at-usd-17-75-billion-480046
7. “Moneycontrol Pro Panorama | Import slump, a double-edged sword” Moneycontrol, 16 Feb. 2023, https://www.moneycontrol.com/news/opinion/moneycontrol-pro-panorama-import-slump-a-double-edged-sword-10097961.html