INDIA’S GOODS EXPORTS

ChinmayaIAS Academy - Current Affairs May 16, 2023 GS3, Indian Economy Leave a comment 139 Views

India’s goods exports have fell the steepest in three years in April, 2023 because of the weakening global demand and declining commodity prices.
According to the commerce ministry data, the Exports have declined by nearly 13% i.e., from $39.70 billion to $34.66 billion in the year-ago period.
The Merchandise imports have also fell by 14% to $49.90 billion from $58.06 billion a year earlier.
Consequently, the trade deficit has narrowed to $15.24 billion from $18.36 billion in April last year.
The Imports have declined partly because of the cooling down of commodity prices, and partly because of reduced demand for products considered discretionary spending.
The major contributors to decline in imports are gems and jewellery and petroleum sector.
However, the Services exports has jumped 26% to $30.36 billion compared to $24.05 billion a year earlier.
While the services imports surged 17% to $16.05 billion from $14.06 billion during the same period.
The year-on-year decline in the merchandise trade deficit was primarily driven by non-oil items, with the fall in crude oil prices being partly absorbed by higher volumes.
Barring four countries, India’s exports to all top major destinations have declined in last one year.
The top items of India’s exports i.e., gems and jewellery, engineering goods, organic and inorganic chemicals and ready-made garments, performed poorly as the demand in Western countries continued to decline due to high inflation.
On the contrary, exports in electronic goods, drugs and pharma, rice, oil meals, ceramic products, and glassware grew marginally in last one year.