India's exports fall 6.86% to $34.48 billion in August
India”s exports reached $34.48 billion in August 2023, down 6.86% from August 2022. This is the seventh consecutive month of decline in exports due to subdued global demand.
The fall in shipments of petroleum and gems and jewelry had a significant impact on overall exports. The trade deficit (difference between imports and exports) stood at $24.16 billion, which was almost flat compared to the same month last year, but widened from $20.67 billion in July.
Imports also declined, reaching $58.64 billion in August 2023, down 5.23% from August 2022.
Cumulatively, exports during April-August 2023 contracted by 11.9% to $172.95 billion. Imports during the five-month period fell by 12% to $271.83 billion. The trade deficit narrowed to $98.88 billion from $112.85 billion during April-August 2022.
Commerce Secretary Sunil Barthwal, briefing media about the data, said that there was some improvement, which was a “good sign”. He added that there had been pessimism until July, but now “green shoots” were visible.
“This means that the global situation is improving. The trade deficit, which has always been a concern, but the figures (August) are looking good. It is a soothing factor for the economy,” PTI quoted Barthwal as saying.
However, macroeconomic headwinds pose a threat. The European Central Bank has increased interest rates, which could lead to demand shrinkage. This will be a challenge for India”s shipments. Barthwal also pointed out that tea, coffee, rice, spices, leather, gems and jewelry, textiles, and petroleum products had recorded negative growth in August.
However, 15 of the 30 key sectors showed upward momentum in August, including iron ore, electronic goods, oilseeds, cashew, carpet, engineering, pharma, and marine products.
On the import front, oil shipments in August declined by 23.76% to $13.2 billion. During April-August 2023, it fell by 23.33% to $68.3 billion.
Gold imports stood at $4.93 billion in August, up 38.75%. During April-August 2023, gold imports rose by 10.48% to $18.13 billion.
According to the data, exports of electronic goods rose by 26.29% in August to $2.17 billion. During the five-month period, it has increased by 35.22% to $11.18 billion.
Furthermore, services exports in August were estimated at $26.39 billion, compared to $26.5 billion a year ago. Imports stood at $13.86 billion, compared to $15.22 billion.
The estimated value of services exported in April-August 2023 was $133.38 billion, compared to $126.85 billion in April-August 2022.
