Notably, China’s exports decreased 6.8% in January and February compared to the same two months last year, once again as a result of weak global demand.

India’s exports of gems and jewellery, cotton and man-made yarn, carpets, coffee, plastic and linoleum all decreased as a result of the prognosis for a recession and high inflation in the advanced nations. India’s exports of goods fell by 8.88% in February after growing by 1.4% in January, reaching a four-month low of $33.88 billion.

Positively, non-oil exports increased sequentially, while the speed of the year-over-year contraction slowed down in February 2023 compared to the previous month. Following the Union Budget, gold imports increased again, despite printing substantially lower than in the previous year. We anticipate the trade gap to be between $18 and $20 billion. the current month, “ICRA Ltd.’s chief economist and head of research and outreach, Aditi Nayar, stated.

We estimate that the current account deficit reached its height in Q2 FY2023, peaking at $36 billion. We forecast a significant decline to $24 billion in Q4 FY2023 and $12–15 billion in Q4 FY2023, after which the deficit would decline further “Nayar continued.

The trade imbalance, or difference between exports and imports, increased from $16.34 billion in the previous month but decreased by 6.7% from the same month last year. Santosh Kumar Sarangi, director general of international trade, reported that by the end of January, exports of mobile phones had surpassed 67,333 crore.