India’s exports surge in key sectors, trade deficit falls in September. There is a 31% reduction in India’s trade deficit, which amounts to USD 19.4 billion.
USD 34.5 billion worth of exports declined by 2.6%. Exports of engineering goods increased by 6.8%
According to India’s Commerce Ministry, the trade data for September 2023 showed a small decline, but on the import front, it fell by 15% more pronouncedly. In September 2022, exports decreased by 2.6%, to USD 34.5 billion, from USD 35.4 billion. During the same period last year, imports were USD 53.84 billion compared to USD 63.37 billion.
Compared to September 2022, India’s trade deficit decreased by 31% to USD 19.4 billion. India’s trade deficit decreased because its imports exceeded its exports.
Positive reading is made possible by fine print-india’s exports
Overall, trade figures decreased, but several key sectors showed improvement.
Exports of non-petroleum and non-gems and jewellery increased by 1.86% from USD 24.33 billion in September 2022 to USD 24.78 billion in September 2023.
Exports of engineering goods grew by 6.8% from USD 8.34 billion in September 2022 to USD 8.91 billion in September 2023.
Exports of marine products increased by 4.7% from USD 0.72 billion in September 2022 to USD 0.75 billion in September 2023.
During April-September 2023, exports of electronic goods increased 27.6% to USD 13.11 billion, up from USD 10.27 billion in April-September 2022.
From USD 0.24 billion in September 2022 to USD 0.36 billion in September 2023, the ceramic products and glassware segment increased substantially by 50.5%.
In September 2023, drug and pharma exports increased by 9.0%, reaching USD 2.39 billion, up from USD 2.19 billion in September 2022.
The iron ore segment grew by 128% between April and September 2023, to USD 1.5 billion, compared to USD 0.66 billion in April and September 2022.
There was a growth in agricultural exports from April to September 2023. Spices (1.35%), Fruits & Vegetables (23.47%), Oil Seeds (3.43%), Coffee (10.67%), Cereal Preparations and Miscellaneous Processed Items (1.89%), Oil Meals (41.16%), and Tobacco (7.6%) all exhibited positive trends.
As a result of the Russia-Ukraine conflict, the gems and jewellery segment has been adversely affected, and now the Israel-Palestine war is likely to continue. We don’t see much (impact) unless and until it escalates over time, so we are waiting and watching,” said Commerce Secretary Sunil Barthwal.
There are currently challenges facing the gems and jewellery segment due to the Russia-Ukraine conflict and the Israel-Palestine conflict.
Barthwal, the Commerce Secretary, commented on these issues, saying they might have limited impact unless conflicts escalate.
It has boosted the India’s efforts to export, including the Production Linked Incentive (PLI) which has increased the India’s trade performance.
As a result of its commitment to increasing trade activities, reducing import dependence, and boosting economic activity, the nation’s exports reached USD 775.87 billion in 2022-2023, a substantial increase of over 14%.
Update on the India-UK Free Trade Agreement- india’s trade deficit
The UK and India continue to negotiate a Free Trade Agreement (FTA).
A total of 134 rounds of discussions have taken place since September 18, covering 26 policy areas or chapters. The majority of these chapters have been closed or are in the advanced stages of negotiation, reflecting significant progress in this bilateral economic engagement.
A UK delegation will be visiting India to negotiate an FTA. High level engagements are taking place at various levels to resolve differences. The majority of chapters have been closed or are at advanced stages of negotiation. There has been 134 round of negotiations since 18th September 2023. According to the Commerce Ministry, negotiations cover 26 policy areas / chapters.
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