India's exports fell 17% to $29.78 billion in October, and its trade deficit increased to $26.91 billion
India's exports of goods decreased to $29.78 billion from $35.45 billion the month before, while its imports decreased to $56.69 billion from $61.16 billion during the same time period.
According to data released by the commerce ministry on Tuesday, a decline in merchandise exports in some sectors caused a 16.65% decrease in the nation's overall outbound shipments to $29.78 billion in October, while the merchandise trade deficit increased to $26.91 billion from $25.71 billion the previous month. Imports during the month were $56.69 billion compared to $53.64 billion in October 2021, the data showed.
This year, from April to October, exports increased by 12.55 percent to $263.35 billion. Data show that imports increased 33.12% to $436.81 billion.
"Between September 2022 and October 2022, both merchandise exports and imports slowed sequentially, which, in our opinion, was caused by more holidays associated with the holiday season. As a result, despite the significant YoY contraction in the merchandise exports figure, the trade deficit increased in MoM terms during this time, but not alarmingly so "said Aditi Nayar, ICRA's chief economist.
As of now, we anticipate some rebound in exports and imports relative to October 2022, although it may not be as strong as the trend seen between November and December of 2021, given the prevailing global demand concerns, Nayar added. "The sequential trend in exports in October 2022 echoes what was recorded in November of 2021, which had seen a later onset of the festive season.
According to experts, supply interruptions, global inflation, the Russia-Ukraine conflict, the simmering China-Taiwan problem, and other factors are slowing down economic growth globally and lowering demand.
Exporters are crossing their fingers that India's exports will increase and are optimistic that things will get better soon.
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