India's Exports Decline 6.86 Per Cent, Trade Deficit Narrows To $24.16 Billion

The country's trade deficit in the month stood at $24.16 billion, narrowing 2.8 per cent when compared to the $24.86 billion deficit reported in the same month last year

India's merchandise exports slipped 6.86 per cent to $34.48 billion in August this year as against $37.02 billion reported in the same month last year, data from the Ministry of Commerce and Industry showed on Friday. Imports of merchandise also declined by 5.23 per cent to $58.64 billion as against $61.88 billion reported in August 2022. The country's trade deficit in the month stood at $24.16 billion, narrowing 2.8 per cent when compared to the $24.86 billion deficit reported in the same month last year. 

The commerce ministry also reported that during the April-August period this year, merchandise exports contracted by 11.9 per cent to $172.95 billion, while Imports fell by 12 per cent to $271.83 billion in the same period. 

In the services sector, exports in August 2023 were estimated at $26.39 billion, down from $26.50 billion reported in August 2022. Services imports for August 2023 stood at $13.86 billion, down from $15.22 billion in August 2022.

For the period from April to August 2023, services exports reached $133.38 billion, showing a positive growth rate of 5.14 per cent compared to the same period in the last year. Services imports for the same period stood at $71.98 billion.

The data showed that in August Non-petroleum and non-gems and jewellery exports in August 2023 were $26.00 Billion, compared to $25.20 Billion in August 2022, while imports of these goods in August 2023 amounted to $38.31 Billion, compared to $37.86 Billion reported in the year-ago period.

In August 2023, among the 30 key sectors, 15 saw positive growth in merchandise exports compared to August 2022. Notable sectors with substantial growth included Iron Ore (1556.09 per cent), Oil Meals (57.26 per cent), and Electronic Goods (26.29 oer cent). Electronic goods exports surged by 26.29 per cent, reaching $2.17 billion in August 2023, compared to $1.72 billion in August 2022. Over the April-August 2023 period, electronic goods exports recorded substantial growth of 35.22 per cent.

However, merchandise imports faced challenges, with 15 out of 30 key sectors experiencing negative growth in August 2023. Notable sectors with declining imports include Silver (-78.15 per cent), Cotton Raw & Waste (-74.67 per cent), and Fertilisers (-55.69 per cent).

In August 2023, India's overall exports, encompassing both merchandise and services, stood at $60.87 billion, declining 4.17 per cent compared to August 2022, according to government data. In the same month, the country's imports for the same period totaled $72.50 billion, decreased by 5.97 per cent year-on-year. This resulted in an overall trade deficit of $11.63 billion for August.