Goods exports grow 6.21% in October

India’s merchandise exports grew 6.21% in October to $33.57 billion, partially aided by the low base of $31.6 billion registered during the same month last year, the monthly trade data released by the Commerce Ministry says. This is the second time during the current financial year where monthly merchandise exports exhibited a positive month-on-month growth. In August, merchandise exports had grown 3.79% to $38.42 billion, as against $37.02 billion in August 2022.

On a month-on-month basis, merchandise exports had declined in value in April (-12.73%), May (-10.34%), June (-18.77%), July (-9.97%) and September (-2.72%). Commerce ministry officials say the current growth trend is indicative of the green shoots that have begun to be seen in recent months and is expected to continue.

At the same time, merchandise imports for October shot up 12.3% to $65.03 billion, as compared to $57.91 billion in October 2022, driving the trade deficit for the month to a new high. Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA Ltd says the increase in imports and trade deficit was more or less on expected lines. “Given the shift in the festive calendar, we had expected the merchandise trade deficit to enlarge to $22.8 billion in October 2023. The higher than anticipated merchandise trade deficit was on account of gold, oil as well as balance imports, with exports broadly in line with our forecast,” she says.

The non-petroleum and non-gems & jewellery exports in October 2023 were $24.57 billion, compared to $21.99 billion in October 2022. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in October 2023 were $36.87 billion, compared to $35.12 billion in October 2022.

The commerce ministry data shows that the value of merchandise exports for the period April-October 2023 were $244.89 billion as against $263.33 billion during April-October 2022. Merchandise imports for the April-October 2023 period were worth $391.96 billion as against $430.47 billion during April-October 2022. The merchandise trade deficit for April-October 2023 was estimated at $147.07 billion as against $167.14 billion during April-October 2022.

India’s overall exports (Merchandise and Services combined) in October 2023 is estimated to be $62.26 billion, exhibiting a positive growth of 9.43% over October 2022. Overall imports in October 2023 are estimated to be $79.35 billion, exhibiting a positive growth of 11.10% over October 2022.

India’s overall exports (Merchandise and Services combined) in April-October 2023 are estimated to be $437.54 billion, exhibiting a negative growth of (-) 1.61% over April-October 2022. Overall imports in April-October 2023 are estimated to be $ 495.17 billion, exhibiting a negative growth of (-) 7.37% over April-October 2022.