According to data from the commerce ministry, India’s exports in January declined by 6.58% to $32.91 billion, as compared to $35.23 billion in the same month last year. Meanwhile, imports in January also fell by 3.63% to $50.66 billion from $52.57 billion in January 2022. The trade deficit in January decreased to $17.75 billion from $23.76 billion in December.
However, between April and January this fiscal year, the country’s merchandise exports increased by 8.51% to $369.25 billion, while imports rose by 21.89% to $602.20 billion.
Despite the decline in exports in January, India’s external position remains stable due to a reduction in the merchandise trade deficit, higher services exports, and higher-than-expected remittance growth. Reserve Bank of India governor Shaktikanta Das anticipates that India will receive more overseas inflows and the current account deficit will ease going forward.
In the third quarter, the situation showed signs of improvement as imports decreased due to lower commodity prices, resulting in a narrowing of the merchandise trade deficit.