Indian merchandise exports continued to decline for the seventh consecutive month in August, with a year-on-year decline of 6.9% to $34.48 billion due to weak foreign demand, Business Standard reported on Friday, September 15, citing data from the Department of Commerce.
However, the Government was optimistic, stating that exports were “stabilizing” and that “green shoots” were clearly perceived.
On the other hand, the merchandise trade deficit, or difference between exports and imports, reached its highest level in 10 months in August, with 24.16 billion dollars. This was due to the rise in crude oil prices and strong domestic demand, which caused an increase in imports of almost 11% compared to the previous month.
Last month, imports totaled $58.64 billion, down 5.2% from a year earlier.
According to the newspaper, Commerce Secretary Sunil Barthwal attributed part of the contraction to the previous year’s high base and falling raw material prices, which affected export values, although export volumes remained positive. .
“Pessimism is now turning into optimism, as the green shoots are clearly visible. The industry says its export orders are better and is also optimistic about export order books. This month (August), at least the story of last month (July) is repeated. This means that there is an improvement in terms of the global export scenario,” Barthwal said in a press conference.
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The Hindu BusinessLine reported that the government is optimistic as half of the top 30 export items, including engineering, electronics, pharmaceuticals and some agricultural goods, recorded growth during the month.
According to the newspaper, Commerce Secretary Sunil Barthwal attributed part of the contraction to the previous year’s high base and falling raw material prices, which affected export values, although export volumes remained positive.
Barthwal noted that firm oil prices could impact commodity prices, affecting exports in the future.
Aditi Nayar, chief economist at ICRA, told the business daily that with monthly merchandise trade deficit prints averaging much higher during July-August vis-à-vis April-June 2023, the current account deficit of India is likely to increase in Q2FY24 from $10-12 billion expected in Q1FY24.
Article republished from The Wire within the framework of an agreement between both parties to share content. Link to original article:https://thewire.in/trade/goods-exports-decline-6-9-year-on-year-in-august-due-to-weak-external-demand-report
Source: https://reporteasia.com/economia/consumo/2023/09/19/exportaciones-bienes-india-caen-agosto/
