India’s merchandise exports fell in October; Exporters say reflection of tough global conditions

New Delhi:

India’s merchandise exports declined to $29.78 billion in October from $35.73 billion in the same month last year.

Inbound merchandise shipments for the month under review stood at $56.69 billion as against $53.64 billion in October 2021.

Exporters said the slowdown in merchandise exports is a reflection of tough global trade conditions. He said the decline in exports is due to rising inflation, slowdown in economies, high volatility in currencies and geopolitical tensions.

A Sakthivel, president of the Federation of Indian Export Organisations, said a fall in commodity prices and restrictions on some exports intended to contain price rise in the domestic market have also affected the growth numbers.

Non-petroleum and non-gems and jewelery exports stood at $21.72 billion in October, as against $26.15 billion in October last year.

Non-petroleum, non-gems and jewellery-gold, silver and precious metals-imports stood at $34.40 billion, up from $32.88 billion in the comparable month last year.

According to data released by the government, India’s total exports, goods and services combined, are estimated at $58.36 billion in October, a growth of 4.03 per cent over the same period last year.

Overall imports are estimated to be $73.00 billion with a growth of 11.82 percent.

Sakthivel said the decline in exports of key labor intensive sectors is a matter of particular concern. He cited sectors such as engineering goods, apparel and textiles, gems and jewellery, petroleum products, organic and inorganic chemicals, drugs and pharmaceuticals, marine products and leather and leather products.

“Several agricultural product sectors are of particular concern as these sectors are important for huge employment generation,” he said.

The steady growth in exports of electronic goods is being seen as a good sign.

Exports of oilseeds, oilseeds, tobacco, tea and rice also registered an increase.

Total exports grew by 19.56 per cent to $444.74 billion for the six months between April and October.

Overall imports increased by 33.80 percent to $543.26 billion.

ICRA Chief Economist Aditi Nayar said merchandise exports and imports declined on a sequential basis due to a large number of holidays related to the festive season.

Aditi Nair said the trade deficit widened month-on-month during this period, but was not worrisome despite a large year-on-year contraction in merchandise exports.

“As of now, we expect some rebound in exports and imports in November 2022 relative to October 2022, although this may not be as strong as the trend seen between November and December of 2021, given the prevailing global demand concerns Happened.”