India’s Slowing Exports
15th December, 2022 Economy
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- India’s exports declined about 16.7% in October 2022 compared with the year-earlier period. This is the first slide reported for any month since February 2021 when the globe was in the grip of the second COVID-19 wave.
- Engineering goods, which have lent a strong shoulder to India’s goods exports in recent years, slid 21%. The government had set a target for FY23 at $127 billion for this sector. This means, we ought to have exported $74 billion in April-October, but we came up short at $62.5 billion.
- The Commerce Ministry also pointed out that for October, $2 billion worth of exports declining was seen in steel and allied products, highlighting the fact that the government had levied an export duty on these products to help increase local availability and hence temper local prices. The government has since removed this duty.
- Electronic goods exports gave reason for cheer, being among a handful of segments to witness a rise in export growing about 38% to $1.8 billion.
- The slowdown is attributed to high inflation in developed regions, falling demand in China, slowdown in EU, fear of a slowdown in the US and the Russia-Ukraine war.