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The Indian economy, one of the world’s most dynamic and diversified, is experiencing significant shifts in its trade dynamics. In September 2023, India’s exports, particularly in merchandise, demonstrated both strengths and challenges. This blog post delves into the latest trade statistics, showcasing India’s trade deficit, sector-wise performance, and the trends that are shaping the country’s trade landscape.
India’s overall exports in September 2023 were estimated at USD 63.84 billion, reflecting a decrease of (-) 1.20% compared to the same month in 2022. The trade deficit is expected to improve significantly, with a 47% reduction during April-September 2023, standing at USD 39.91 billion. The merchandise trade deficit has also shown progress, decreasing from USD 140.83 billion in April-September 2022 to USD 115.58 billion in the same period in 2023.
Non-petroleum and non-gems & jewelry exports showed resilience, increasing by 1.86% from USD 24.33 billion in September 2022 to USD 24.78 billion in September 2023.
Exports of engineering goods recorded robust growth, surging by 6.8% from USD 8.34 billion in September 2022 to USD 8.91 billion in September 2023.
Exports of marine products witnessed a notable rise, increasing by 4.7% to USD 0.75 billion in September 2023 compared to USD 0.72 billion in September 2022.
Electronic goods exports registered an impressive growth of 27.6% at USD 13.11 billion during April-September 2023, compared to USD 10.27 billion in the same period in 2022.
The ceramic products and glassware sector saw a substantial increase of 50.5%, climbing from USD 0.24 billion in September 2022 to USD 0.36 billion in September 2023.
Exports in the drugs and pharma sector continued to flourish with a growth rate of 9.0% in September 2023, reaching USD 2.39 billion from USD 2.19 billion in September 2022.
Iron ore exports recorded an extraordinary growth of 128% during April-September 2023, increasing to USD 1.5 billion from USD 0.66 billion in April-September 2022.
Agricultural exports demonstrated remarkable growth during April-September 2023, with notable increases in several segments, including spices (1.35%), fruits & vegetables (10.67%), cereal preparations & miscellaneous processed items (1.89%), oil meals (41.16%), tobacco (7.6%), oil seeds (23.47%), coffee (3.43%), and cashew (0.31%).
– Merchandise exports in September 2023 amounted to USD 34.47 billion, compared to USD 35.39 billion in September 2022.
– Merchandise imports in September 2023 stood at USD 53.84 billion, down from USD 63.37 billion in September 2022.
– For the period of April-September 2023, merchandise exports reached USD 211.40 billion, while imports reached USD 326.98 billion.
– The merchandise trade deficit for April-September 2023 was USD 115.58 billion, improving from USD 140.83 billion in the same period in 2022.
– Non-petroleum and non-gems & jewelry exports in September 2023 amounted to USD 24.78 billion, while non-petroleum, non-gems & jewelry imports stood at USD 33.58 billion.
– During April-September 2023, electronic goods exports reached USD 13.11 billion, marking a growth of 27.62% compared to the same period in 2022.
Services exports for September 2023 were estimated at USD 29.37 billion, while services imports reached USD 14.91 billion.
For the period of April-September 2023, services exports amounted to USD 164.89 billion, and services imports reached USD 89.22 billion.
The services trade surplus for April-September 2023 was estimated at USD 75.67 billion, indicating a positive trend compared to the same period in 2022.
– For the month of September 2023, in merchandise exports, 12 out of 30 key sectors exhibited positive growth compared to September 2022. Notable performers included Iron Ore (8054.78%), Oil Meals (72.66%), Ceramic Products & Glassware (50.49%), and more.
– In merchandise imports, 20 out of 30 key sectors exhibited negative growth in September 2023, with categories like silver (-89.94%), cotton raw & waste (-87.68%), and transport equipment (-53.15%) showing significant declines.
– For April-September 2023, 13 of the 30 key sectors in merchandise exports displayed positive growth. These included Iron Ore (128.04%), Oil Meals (41.16%), Electronic Goods (27.62%), and others.
– In merchandise imports during the same period, 17 of the 30 key sectors experienced negative growth, with silver (-88.58%), cotton raw & waste (-62.9%), and sulphur & unroasted iron pyrites (-48.62%) among the sectors showing declines.
– Notably, silver imports slumped by 89.94% from USD 1.06 billion in September 2022 to USD 0.11 billion in September 2023.
Despite challenges, services exports are expected to continue growing positively at 5.65% during April-September 2023 over the same period in 2022.
India’s trade deficit has shown a considerable decline in April-September 2023. The overall trade deficit for this period is estimated at USD 39.91 billion, significantly lower than the USD 75.34 billion deficit in April-September 2022, registering a decline of (-) 47.03%. The merchandise trade deficit during April-September 2023 is USD 115.58 billion, compared to USD 140.83 billion during April-September 2022, reflecting a decline of (-) 17.93%.
In conclusion, India’s trade landscape in September 2023 exhibits a mix of challenges and growth opportunities, with specific sectors contributing significantly to the nation’s export growth. While merchandise exports face some headwinds, the resilience of several sectors and the services trade surplus present promising trends for India’s trade future.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions
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