India’s exports of goods and services showed a marginal increase of 0.4 per cent, reaching USD 765.6 billion in 2023, defying global economic uncertainties.
According to data from the commerce ministry, key sectors contributing to this growth include electronics, pharmaceuticals, cotton yarn, fabrics, and made-ups, ceramic products, meat, dairy, and poultry products, fruits and vegetables, as well as information technology.
While goods exports contracted by 4.71 per cent to USD 431.9 billion, services exports are estimated to have risen by 7.88 per cent to USD 333.8 billion. The merchandise imports also saw a decline of 7 per cent, totaling USD 667.73 billion in 2023 compared to USD 720.2 billion in 2022.
The main export destinations for India remain the US, the UAE, the Netherlands, Bangladesh, the UK, and Germany. However, challenges such as the Russia-Ukraine war, the Israel-Hamas conflict, and the Red Sea trade route crisis due to attacks by Yemen-based Houthis on cargo ships have impacted goods shipments.
According to the Economic think-tank Global Trade Research Initiative (GTRI), India’s overall exports and imports decreased by 2.6 per cent to USD 1609 billion in 2023 compared to USD 1651.9 billion in 2022. The negative trade balance, representing the difference between exports and imports, decreased from USD 141.3 billion in 2022 to USD 75.2 billion in 2023.
Data for the current fiscal year reveals that goods exports during April-December 2023 dipped by 5.7 per cent to USD 317.12 billion, while imports contracted by 7.93 per cent to USD 505.15 billion. This resulted in a trade deficit of USD 188.02 billion in the first three quarters, compared to USD 212.34 billion in April-December 2022.
International trade experts warn that if the ongoing challenges persist, they could have significant implications for global trade, emphasising the need for continued monitoring and strategic responses to navigate the evolving economic landscape.
