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India’s merchandise exports contracted 3.5 per cent in September amid shrinking demand for Indian goods due to recession fear in advanced economies.
Data released by the commerce ministry on Monday showed exports dipped to $33.6 billion in September from $33.8 billion during the same month a year ago. Growth in merchandise imports in September decelerated substantially to grow 5.4 per cent to $59.3 billion, leading to a trade deficit of $22.7 billion.
Non-petroleum exports in September contracted 7.25 per cent to $26.5 billion while non-petroleum imports grew 10.7 per cent to $43.75 billion.
During the first half (April-September) of the financial year FY23, India’s merchandise exports grew 15.5 per cent to $229 billion while imports rose 37.9 per cent to $378.5 billion, leading to a trade deficit of $149.5 billion.
During September, export of engineering goods, organic and inorganic chemicals, pharmaceuticals, readymade garments, cotton yarn and rice contracted while export of petroleum products, gems and jewellery, electronic goods and marine products increased.
Similarly, during the month, imports of petroleum products, electronic goods, gold, precious stones, chemicals, vegetable oil while import of machinery, transport equipment, coal, and iron and steel increased.
The World Trade Organisation (WTO) last month in its latest goods trade barometer pointed to stagnating global trade growth. The volume of world merchandise trade plateaued with year‐on‐year growth slowing to 3.2 per cent in the first quarter of 2022, down from 5.7% in the fourth quarter of 2021. WTO has projected 3 per cent growth in volume of global merchandise trade in 2022 compared to 9.8 per cent growth in 2021. “Uncertainty surrounding the forecast has increased due to the ongoing conflict in Ukraine, rising inflationary pressures, and expected monetary policy tightening in advanced economies,” it said.
