Manufacturing across Euro Zone and US have contracted, notes Dr Sakthivel
Sluggish global economic growth and demand specially in major economies like EU, UK and China coupled with the subdued growth in economies like US and Australia has impacted Indian exports in September 2023, says FIEO President Dr A Sakthivel.
Indian exports in September 2023 declined by 2.59% to US$34.47 billion compared to September 2022.
Manufacturing across the Euro Zone and the US have also contracted due to persistent policy tightening measures, noted Dr Sakthivel, expecting demand in October to rebound especially with the US Fed and UK Central Bank pausing the interest rates.
Further, he also expects regional demand picking up as the economic outlook for Asia and the Pacific remains upbeat and the region’s developing economies are expected to grow 4.7% in 2023, and 4.8% in 2024.
Besides, 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.
The softening of the commodity prices across the globe have also pulled down value-wise exports, according to FIEO chief.
“All these have also led to decline in exports of China in recent months, even contracting by more than 6 percent during September 2023,” he said.
Indian imports also declined by 15% Y-o-Y to US$53.84 billion in September 2023, which has led to a 5-month low merchandise trade deficit of US$19.37 billion.
Though the decline in imports is a good sign for the country, but this leads to de-growth in 0key export sectors like petroleum products, gems & jewellery, organic & inorganic chemicals among others. Fiinews.com
