Dr Sakthivel expects orders to pickup during Christmas-New Year season
The modest performance of Indian exports in August was due the sluggish global economy and contraction in demand specially in major economies like EU, the UK and China coupled with the subdued growth in economies like the US and Australia.
This is the reading of export markets by FIEO President Dr A Sakthivel following the 6.86% on the year decline in August 2023 export of US$34.48 billion.
Manufacturing across the Euro Zone and the US has also contracted due to persistent policy tightening measures by both the US Fed and the European Central Bank squeezing finances, he noted.
As Asian economies are showing mixed bags, countries across the continent have struggled to maintain the momentum, added Dr Sakthivel.
“The softening of the commodity prices across the globe have also pulled down value-wise exports. Countries are showing decline in exports including China whose exports have contracted by almost 9% in August 2023.
“Moderation in pace of growth in merchandise exports significantly in 2023 has been mainly because of ongoing 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.
“Exports will start showing better growth numbers, as things are expected to improve in the next few months with more fresh orders coming and order bookings for the Christmas and New Year season,” he said.
15 out of 30 key products sectors, which have shown positive growth during the month of August 2023, include Iron Ore, Oil Meals, Ceramic Products & Glassware, Electronic Goods, Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc., Tobacco, Oil Seeds, Meat, Dairy & Poultry Products, Cashew, Fruits & Vegetables, Carpet, Cereal Preparations & Miscellaneous Processed Items, Engineering Goods, Drugs & Pharmaceuticals and Marine Products. FIEO Chief said that 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 etc.
The trade and industry is waiting for the conclusion of important FTAs with UK and EU along with GCC Countries, he said.
Merchandise exports in August 2023 were US$34.48 billion, as compared to US$37.02 billion in August 2022 while August 2023 imports were US$58.64 billion, as compared to US$61.88 billion in August 2022.
The merchandise exports for the period April-August 2023 were US$172.95 billion as against US$196.33 billion during April-August 2022.
Merchandise imports for the period April-August 2023 were US$271.83 billion as against US$309.19 billion during April-August 2022.
The merchandise trade deficit for April-August 2023 was estimated at US$98.88 billion as against US$112.85 billion during April-August 2022, according to data from the Ministry of Commerce and Industry. Fiinews.com
