Exports slide 12% on recession fears; trade deficit widens to $23.76 bn

Imports last month also contracted 3.46 per cent to $58.24 billion, amid falling commodity prices

India’s merchandise exports contracted 12.2 per cent year-on-year (YoY) in December to $34.48 billion as slowing external demand amid recession fears in developed economies continued to weigh on outbound shipments, the data released by the commerce and industry ministry showed. Still in the first nine months of the current financial year, exports grew nearly 9 per cent.

The latest decline in the value of outbound shipments can also be attributed to the statistical effect of a high base because December 2021 witnessed the second-highest monthly exports in the previous financial year at $39.3 billion.

 “There are a lot of headwinds. Despite that,