Goods trade deficit swells to 10-month high in Aug

livemint.com:

NEW DELHI : India’s merchandise trade gap swelled to the highest in 10 months in August as exports continued to slow due to weak demand in the West and China, even as sustained geo-political tensions keep inflation and interest rates elevated. Commerce ministry data showed on Friday that exports slipped nearly 7% to $34.48 billion in August from $37.02 billion a year earlier. Meanwhile, imports declined to $58.64 billion from $61.88 billion last year, leaving the trade balance at $24.16 billion.

Exporters expressed worry over the plunge in shipments of gems and jewellery, and organic and inorganic chemicals, that fell 22% and 18% respectively. Easing global fuel prices impacted earnings from refined petroleum exports, resulting in a sharp 30% drop. Cereal exports also fell over 40% due to export restrictions to arrest domestic prices.

However, engineering goods exports recovered to register a growth of 8% in August after eight consecutive months of year-on-year decline. Official data showed that engineering goods exports stood at $9.05 billion in August 2023 as against $8.40 billion last year. Arun Kumar Garodia, chairman, Engineering Exports Promotion Council of India said various factors including a slowdown in key advanced markets and muted overall demand had led to lower exports of engineering goods in previous months.

Exports of electronic goods rose by 26.29% in August to $2.17 billion. During the April-August period, they rose by 35.22% to $11.18 billion. Further, services exports in August are estimated at $26.39 billion compared to $26.5 billion a year ago.