India’s exports of goods fell for the third time this fiscal year in January, falling by about 6% for the second consecutive month as a result of a downturn in demand across several important markets, including the US and Europe. However, as imports decreased for the second consecutive month as a result of falling commodity prices globally, the trade imbalance shrank to its lowest level in a year.

As a result of the recessionary outlook and high inflation in advanced economies, exports of important industries like gems and jewellery, cotton and man-made yarn, carpets, coffee, plastic and linoleum had a double-digit fall in January.

“The current fiscal year’s overall export growth is approximately 17.33%. The services sector, which has been increasing at historically high rates, is the primary driver of this export increase. 30% is about right. The cumulative growth rate for merchandise exports is also 8.5%. Despite significant global obstacles, we are optimistic that this growth momentum will continue, said Sunil Barthwal, the commerce secretary.

Exports of goods fell 6.59% in January compared to a 3.13% decline in December on an annual basis, reaching a three-month low of $32.91 billion. During the same period, imports decreased by 3.5% to a 17-month low of $50.66 bn, resulting in a $17.75 bn trade imbalance, according to figures issued by the ministry of commerce and industry on Wednesday.

The administration may finally release its long-delayed international trade policy in April as a result of the depressing data. A Sakthivel, president of FIEO, adding that the month’s drop in exports is a result of the ongoing geopolitical difficulties. tightening of financial conditions worldwide, a decline in demand, and tensions between Russia and Ukraine.

“High inventory and currency fluctuations have further complicated an already difficult position. If neither geopolitical conditions nor global economic growth much improve, the upcoming months will be somewhat difficult. However, we will be on track to significantly surpass the export target set for the previous year, reaching around $440-445 billion with a growth of about 4-5% this fiscal, according to FIEO.

According to a government official, India has been able to acquire large amounts of crude, refine it, and then sell the refined petroleum products. The official added that India now exports many of the petroleum products that the UAE formerly sold to Africa.

The absence of diamonds, oil, and jewellery Exports decreased by 7.5% to $25.35 billion, and non-petroleum and non-jewelry imports fell by 3.8% to $33.56 billion in January, both of which were affected by a slowdown in industrial activity. The government announced corrected inverted duty for a number of sectors, including toys, mobile phone parts, and bicycles, in the Union Budget earlier this month to support domestic manufacturing in light of India’s exports and current account balance being negatively impacted by a lack of external demand. (GI) items, khadi, and coir.

India’s current account deficit increased to a nine year high of 4.4% of GDP in the second quarter on account of greater trade imbalance, indicating the impact of declining global demand on exports. The nation’s CAD for the first six months of the current fiscal year was 3.3% of GDP.