According to the most recent data provided by the commerce and industry ministry, a slowdown in demand for Indian goods from five of its top 10 markets—the United States (US), the United Arab Emirates (UAE), Bangladesh, Germany, and Hong Kong—led to a sharp decline in exports of nearly 14% in March. Geopolitical unrest and worries about recession in various major economies served as a backdrop to this.
52% of the value of the commodities exported in March went to India’s top 10 export destinations.
India’s exports to the US, which had been its biggest market for a decade, decreased 5.4% year over year to $7.32 billion in March. The UAE, the world’s second-largest export market, which last year also agreed to a free trade pact with India, observed a $2.70 billion drop of 12.6%. According to the report, exports to Bangladesh, Germany, and Hong Kong decreased by 28%, 24.3%, and 28.4%, respectively.
The top 10 markets saw increase in the following countries: Singapore (10.9%), Saudi Arabia (18.6%), the UK (17.5%), China (15.86%), and the Netherlands (42.2%). The increase in the value of exports to China could be ascribed to the country’s economy finally opening up after several months of a slowdown brought on by its zero-Covid policy.
Data from the commerce and industry ministry revealed on Thursday that due to global headwinds like geopolitical tensions, India’s exports of goods declined 13.9% on-year to $38.38 billion in March.
