Dip in demand from China, Italy may have hit India's merchandise exports

India's merchandise exports contracted 3.5% to $33.6 bn in September

A decline in external demand from countries, such as China, Bangladesh, and Italy, is driving down India’s merchandise exports that could have led to exports contraction in September for the first time in 19 months.

Disaggregated data available till August showed, among top 50 export destinations of India, shipments contracted to 19 and 17 economies in July and August, respectively. In contrast, exports had declined only to six among the top 50 destinations in June.

Economic slowdown in China and its zero-Covid policy has led to 35.6 per cent contraction in India’s exports in April-August period. S&P last week slashed