October Trade Deficit Widens to $26.91bn as Exports Decline 17%
· Oct Export Down by $5.67bn over
Sept
· Services Buoyant at $28.58
bn, almost touching Merchandise Export Level
· Electronics Export Up 37%,
Hits $1.9bn, Ranks Second largest Export Category in Manufacturing Items Group
·
Export sectors that recorded
negative growth included gems and jewellery (21.56
per cent), engineering (21.26 per cent), petroleum products (11.28 per cent),
ready-made garments of all textiles (21.16 per cent), chemicals (16.44 per
cent), pharma (9.24 per cent), marine products (10.83 per cent), and leather
(5.84 per cent).
·
Imports during the month
under review rose by about 6 per cent to USD 56.69 billion on account of
increase in the inbound shipments of crude oil and certain raw materials such
as cotton, fertiliser and machinery.
India's October merchandise
trade deficit widened to $26.91 billion from $25.71 billion in September.
Meanwhile,
India's merchandise exports fell to $29.78 billion from $35.45 billion in
September. Exports in October 2021 stood at $35.73 billion. Merchandise imports
declined to $56.69 billion from $61.16 billion in the same period, the data
showed. Imports in October 2021 stood at $53.64 billion.
The
merchandise trade deficit for April-October 2022 was estimated at USD 173.46
billion as against USD 94.16 billion in April-October 2021, as per the data.
Trade
deficit in October 2021 was USD 17.91 billion. Last time it was in November
2020, when exports contracted by 8.74 per cent.
Briefng
media, Commerce Secretary Sunil Barthwal said that
global headwinds are impacting consumption worldwide and that would have an
impact on India's exports as well.
The
World Trade Organisation (WTO) has projected that the
global trade growth will rise by 3.5 per cent in 2022 but only one per cent in
2023.
India's
share in global merchandise trade is 1.8 per cent and in global services, it is
4 per cent, and there is a lot of potential to increase this, he said.
Key
export sectors, including gems and jewellery,
engineering, petroleum products, ready-made garments of all textiles,
chemicals, pharma, marine products, and leather, recorded negative growth
during October.
Imports
during the month under review rose by about 6 per cent to USD 56.69 billion on
account of increase in the inbound shipments of crude oil and certain raw
materials such as cotton, fertiliser and machinery.
"India’s
overall exports in April-October 2022 are estimated to be $444.74 billion, exhibiting
a positive growth of 19.56% over the same period last year. Overall imports in
April-October 2022 are estimated to be $543.26 Billion, exhibiting a positive
growth of 33.80% over the same period last year," the ministry said in a
statement.
Overall,
India's exports (merchandise and services combined) stood at $58.36 billion in
October 2022, up 4.03% year-on- year while imports are estimated to be around
$73 billion, up 11.82% year-on-year.
Export
sectors that recorded negative growth included gems and jewellery
(21.56 per cent), engineering (21.26 per cent), petroleum products (11.28 per
cent), ready-made garments of all textiles (21.16 per cent), chemicals (16.44
per cent), pharma (9.24 per cent), marine products (10.83 per cent), and
leather (5.84 per cent).
Sectors
that recorded positive growth included oil seeds, oil meals, electronic goods,
tobacco, tea, and rice in October. Meanwhile, oil imports rose by 29.1 per cent
to USD 15.8 billion. Gold imports, however, declined by 27.47 per cent to USD 3.7
billion during the month.
Federation
of Indian Export Organisations (FIEO) said that
slowdown in merchandise exports is a reflection of toughening global trade
conditions amid demand slowdown on account of high inventories, rising inflation,
economies entering recession, high volatility in currencies and geopolitical
tensions