Attributing the year-on-year fall in India's merchandise exports in July 2023 to global headwinds, the Commerce Ministry has said that most of the decline was due to lower value fetched on export of petroleum exports and not due to lower volumes.
A decline of $11.41 billion year-on-year was also in export of petroleum products from April to July 2023. India recorded merchandise exports of $32.25 billion in July 2023 compared to $38.34 billion in July 2022.
While a rise was noted in India's exports to the UK in July 2023, the exports to US and UAE dropped compared to July 2022.
Commerce Ministry officials said that the export of electronic goods rose by $2.46 billion, and exports of smartphones saw 126 percent growth in between April and July 2023 compared to the same period last year, adding that merchandise imports from China declined during the period and imports from Russia nearly doubled.
Pointing out that India's trade data needs to be seen not in isolation but with quantification of global headwinds, the Commerce Ministry stated that the data of India's export destinations shows a consistent decline in imports in the past 4 months.
Stating that the fall in India's exports was not as much as in many other big economies, the ministry officials added that many economies are witnessing a huge decline in both exports and imports.
The officials explained that a fall in India's trade deficit as well as imports may be interpreted as a result of the country's rise in the global value chains as well as increased domestic production and import substitution due to implementation of several PLI schemes.
First Published: Aug 14, 2023 8:35 PM IST
