India’s merchandise exports in August dipped marginally at $33 billion.According to the official data it was compared to $33.38 billion in the same month a year ago mainly because of the global headwinds including the Chinese slowdown.The government is confident about achieving record $750 billion goods and services.It also exports in FY23 as it plans several policy measures under the New Trade Policy.India’s import in August 2022 was $61.68 billion, an increase of 36.78% over $45.09 billion in the corresponding month of 2021.
Experts expressed concerns about rising imports in comparison to exports, which had been a drag on the country’s gross domestic product (GDP) in the first quarter of the current financial year.EY India chief policy adviser DK Srivastava said: “The contribution of net exports to real GDP growth is negative at (-)6.2% points.India’s GDP grew at 13.5% which is lower than the 16.2% forecast by the Reserve Bank of India.According to the latest trade data, commerce secretary BVR Subrahmanyam said merchandise exports this month are “flat” due to several global headwinds such as the Ukraine war, high inflation.It hardens of interest rates in major economies and the Chinese slowdown.Expressing confidence in India’s resilient economy he said that exports growth is not off-track and according to conservative estimates.
Subrahmanyam said that there are exports restrictions on several commodities to the country’s inflation and a slowdown in the Chinese economy which is one of the largest trading partners of India has impacted exports growth. According to official data, India’s exports to China fell by about 35.6% to $6.8 billion in April-August 2022 compared to $10.5 billion in the same period previous year. India’s imports from China surged by 28% in the first five months of 2022-23 at $43.90 billion.Global headwinds are having their impact on our exports… The demand for low value goods is increasing which may help the employment intensive sectors though per unit realisation may come down,” said Ajay Sahai, director general and chief executive of the Federation.
Some of the sectors that saw a dip in exports are cotton yarns, fabrics, made-ups where exports have declined by 32%. Iron-ore exports have declined by 90%. Handicrafts declined by 36%.Sakthivel said FIEO president “The benefits of the newly signed FTAs and the PLI scheme will further help us in building as we continue to move ahead during the fiscal.” He cautioned about China. “The slowdown in major economies across the world, including China, will further affect the overall forecast for the global growth process.