India expects export demand to remain muted, hopes for pickup after September 2023
With the year-on-year fall in imports outstripping the fall in exports for April 2023, trade deficit in April 2023 has been the lowest in the past 21 months at $1.38 billion. Overall exports have risen by 2 percent in April 2023, while some cooling down has been noted in petroleum prices.
India expects global export demand to remain muted for a large part of the current calendar year, and is pegging its hopes for a pickup in demand after September 2023 due to a possible opening up of Chinese economy and boost in demand boost in Europe and the United States.
Pointing to a slowdown in exports of engineering goods, gems and jewellery, and apparel and garments, Director General of Foreign Trade (DGFT) Santosh Sarangi stated that the tepid exports to the UAE also represent a fall in demand from several CIS countries for which the middle eastern nation as acts as a channel for trade.
The DGFT said that the rupee pile up in trade with Russia is due to defence payments, and is not related to normal trade, as partial payments for defence-related acquisitions have always been in rupee.
Describing that trade in oil is taking place in various currencies, he reiterated that he doesn't feel that any preference is being accorded to the Chinese Yuan or the UAE Dirham in trade. With the 10th round of talks slated to take place for the India-UK FTA from 5th to 9th June in Delhi, he said that by virtue of being an issue of give-and-take and mutual benefit, trade negotiations won't get affected by elections in either of the countries even as efforts are being made to seal the deal as early as possible.
With the year-on-year fall in imports outstripping the fall in exports for April 2023, trade deficit in April 2023 has been the lowest in the past 21 months at $1.38 billion.
Overall exports have risen by 2 percent in April 2023, while some cooling down has been noted in petroleum prices. Over 20 percent growth has been witnessed in exports to the UK and Netherlands in April 2023, and 204 percent year-on-year import growth from Russia has also been noted.
First Published: May 15, 2023 7:43 PM IST
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