India’s merchandise exports shrank 1.15% year-on-year in August to $33 billion, while inelastic imports of petroleum and coal continued to climb, lifting imports above the $60 billion mark for the sixth successive month.
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The country’s goods trade deficit moderated slightly sequentially from the record $30 billion in July, but remained the second highest on record at $28.68 billion, and widened sharply from the $11.7 billion in August 2021.
Preliminary trade data for July had also shown a 0.8% dip in exports, which was revised to a 2.1% uptick. The last time India recorded a contraction in exports was in February 2021.
Experts have attributed the dip in outbound shipments, which declined 9% sequentially, to a growing tendency among international buyers to seek deferrals in shipments of confirmed orders, as well as the gamut of measures taken by the government to try and curb elevated inflation.
While goods exports have averaged $38.5 billion a month between April and August, adding up to $192.5 billion, Mr. Subrahmanyam forecast India’s total outbound shipments in 2022-23 would touch $470 billion, or at least $450 billion in a ‘worst case scenario’.
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