According to the finance ministry, given the decline in international trade, the nation’s export growth may slow down in 2023. According to the report, “there is a chance that India’s exports will exhibit lacklustre growth given that the country’s primary export markets are expected to decrease drastically in 2023.”

“World commerce is anticipated to worsen in 2023,” the ministry continued. A double effect of monetary tightening is that it will decrease demand, which will reduce trade volume, while simultaneously lowering prices, which will decrease trade value. Since EMDEs have strong trade ties to big economies where demand is anticipated to slow significantly, commerce in these regions is especially sluggish. India’s goods reflect the decline in global commerce as well as a reduction in local investment and consumption demands.

According to newly released official figures, exports and imports decreased in value by 6.59% and 3.63%, respectively, in January. As shipments both outward and inward decreased for the second consecutive month, exports decreased for the third time in four months.