India’s merchandise exports in August 2023 declined by 6.86% to $34.48 billion compared to $37.02 billion in August 2022. The decline is evident in key sectors like Non-petroleum and non-gems and jewellery. India’s trade deficit for August 2023 narrowed to $24.16 billion, showing a 2.8% improvement from the $24.86 billion deficit in the same month last year.
Merchandise Imports Dip:
- Imports of merchandise also saw a decrease, down by 5.23% to $58.64 billion from $61.88 billion in August 2022.
Trade Deficit Narrows:
- Despite the decline in both exports and imports, India’s trade deficit for August 2023 narrowed to $24.16 billion, showing a 2.8% improvement from the $24.86 billion deficit in the same month last year.
- In the April-August period of 2023, merchandise exports contracted by 11.9% to $172.95 billion.
- Merchandise imports also fell by 12% to $271.83 billion during the same period.
- In August 2023, services exports were estimated at $26.39 billion, slightly down from $26.50 billion in August 2022.
- Services imports for August 2023 stood at $13.86 billion, down from $15.22 billion in August 2022.
Services Sector Growth (April-August):
- Services exports for the period from April to August 2023 reached $133.38 billion, reflecting a positive growth rate of 5.14% compared to the same period in the previous year.
- Services imports for the same period stood at $71.98 billion.
- Notable sectors with substantial growth in merchandise exports in August 2023 included Iron Ore (1556.09%), Oil Meals (57.26%), and Electronic Goods (26.29%).
- Electronic goods exports surged to $2.17 billion in August 2023, compared to $1.72 billion in August 2022, with substantial growth of 35.22% over the April-August 2023 period.
Challenges in Imports:
- Merchandise imports faced challenges in August 2023, with 15 out of 30 key sectors experiencing negative growth.
- Notable sectors with declining imports included Silver (-78.15%), Cotton Raw & Waste (-74.67%), and Fertilisers (-55.69%).
Overall Trade Performance (August 2023):
- India’s overall exports, including both merchandise and services, stood at $60.87 billion in August 2023, reflecting a 4.17% decline compared to August 2022.
- Imports for the same period totaled $72.50 billion, decreasing by 5.97% year-on-year, resulting in an overall trade deficit of $11.63 billion for August.