Geopolitical unrest and a downturn in developed economies impacted on external demand, causing India’s exports to experience their biggest decline in nearly three years in March, falling 13.9% year-over-year (YoY) to $38.38 billion. As supply networks were impacted by the Covid-induced lockdown in May 2020, India’s exports fell 34.6%.
But according to figures issued by the commerce and industry ministry, for the entire fiscal year 2022–23 (FY23), merchandise exports increased 6% to $447 billion. The increase was mostly brought on by the FY23’s first half of strong growth. In October, the effects of global headwinds including monetary policy tightening, a slowdown in demand from developed economies due to high inflation, and a moderation in commodity prices became apparent. onwards.
India imported commodities worth $58.11 billion in March, a 7.89% decrease year over year, primarily due to fewer imports of things including fertilisers, coal, petroleum products, and electronics. According to the figures, import growth overall increased by 16.5% to $714 billion in FY23.
But in March, India’s trade imbalance grew to a three-month high of $19.73 billion. The trade gap increased from $191 billion in FY22 to $267 billion in FY23 on a cumulative basis.According to Bank of Baroda Chief Economist Madan Sabnavis, future export growth is anticipated to slow down even more because of the continued weakness of global demand. “Furthermore, the currency advantage would be less strong if the rupee tended to appreciate rather than depreciate. Imports most likely Sabnavis stated that if oil prices hold unchanged, pressure will build on the deficit, which could grow.