Goods exports dip to lowest in 9 mths as demand slumps
NEW DELHI : Indian goods exports remained under pressure in July as demand from key markets such as the US, Europe and China remained subdued amid high inflation driven by persistent geopolitical tensions. While services exports continued to report healthy growth, merchandise or goods exports declined to their lowest in nine months, falling 16% to $32.25 billion in July from $38.34 billion in the year earlier, data released by the commerce and industry ministry on Monday showed. Imports during the month also declined by 17% to $52.92 billion from $63.77 billion in the year-ago period, narrowing the trade deficit to $20.67 billion.
Petroleum product exports recorded the steepest decline, plunging more than 40% in July from a year earlier due to softening commodity prices amid reduced demand. This was followed by a 27% decline in labour-intensive gems and jewellery exports. On the other hand, electronic goods, coffee, pharmaceuticals and iron ore exports reported an increase.
Commerce secretary Sunil Barthwal said that global headwinds persist and noted the decline in exports and imports of several countries, including key Indian markets such as the US and Europe. Barthwal, however, expressed optimism that India’s exports of goods and services during FY24 would surpass the previous fiscal year’s $776 billion. Sectors that are doing well include electronics, and that means “India is integrating into global value chains", he said.
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