India’s June exports dropped by 13.16% on the year to US$60.09bn
FIEO expects exports to start showing better growth numbers shortly, as things are expected to improve from Q3 of the Calendar year, with fresh orders or order bookings for festival and New Year season beginning to come.
FIEO President Dr A Sakthivel says slowdown in growth coupled with demand contraction across the globe has led to continuous fall in exports during recent months.
He made the observations as India’s overall exports (Merchandise and Services combined) in June 2023 dropped by 13.16% on the year to estimated US$60.09 billion.
Overall, June 2023 imports were also down by 13.91% at estimated US$68.98 billion from June 2022.
India’s overall exports (Merchandise and Services combined) in April-June 2023 were down by 7.29% over April-June 2022. Overall, imports in April-June 2023 were down by 10.18% over April-June 2022.
Major economies including US and China have shown downward trend in exports, along with the Eurozone slipping into recession during the start of the year itself, marking contraction in their GDP or a slow start to their economy in most of the economies of Europe including UK, said Dr Sakthivel.
The slowdown comes in wake of higher energy prices contributing to curbing demand in Europe’s largest economy and surging inflation, said Dr Sakthivel on 14 July 2023.
One of the reasons for moderating pace of growth in merchandise exports significantly in 2023 has been because of persistent geopolitical tensions, disruption in global supply chain due to Russia-Ukraine war, monetary tightening and recessionary fears, which has continuously led to a fall in consumer spendings across the globe especially in advanced economies, reiterated FIEO President.
Some of the key sectors, which have shown positive growth during the month of June 2023, include electronic goods, drugs & pharmaceuticals, iron ore, fruits & vegetables, oil seeds, cashew, tobacco, handicrafts excluding handmade carpets and coffee.
Though the decline in imports is a good sign for the country, however, that has also led to de-growth in our key export sectors like petroleum products, gems & jewellery, organic & inorganic chemicals among others, he said. Fiinews.com
