Goods exports slide most in 3 years

NEW DELHI: India’s goods exports fell 22% to $33 billion on the back of weak demand in developed countries and a sharp decline in commodity prices. Imports too dropped by 17. 5% to $53 billion, resulting in the trade deficit narrowing to $20 billion.
The June numbers showed that exports have seen the steepest fall since May 2020, when it declined 36. 5% in the wake of the Covid shutdown in large parts of the world. It also marked the fifth straight month of contraction. Exports of $33 billion is also the lowest monthly value of shipments since last October.

The WTO has projected a slowdown in world trade, “that fear is coming true”, commerce secretary Sunil Barthwal said, while blamingthe economic slowdown and high inflation in the US and Europe for hitting Indian exports. “From July, there should be pick up,” he said. Services exports, which were also booming until a few months ago, seem to have been hit by the g lobal slowdown and wereflat at around $27. 1 billion in June, against $26. 9 billion a year ago. On a cumulative basis, exports of goods and services were estimated to have declined over 13% to $60. 1 billion in June, while imports fell a little under 14% to $69 billion, resulting in a trade deficit of around $9 billion.
On the goods side, nine of the top 30 export items saw an increase with electronic goods emerging as the third biggest export item rising 45% to nearly $7 billion on the back of domestic manufacturing of mobile p hones. Only engineering goods ($26. 8 billion), oil products ($18 billion) and gems and jewellery ($7. 5 billion) had a higher value of shipments. On the import front, eight items reported an increase, data released by the commerce and industry ministry showed.
“The need of the hour is to provide further momentum to the economy through easy and low cost of cred it to the MSMEs, marketing support for promoting Brand India products and services globally and GST exemption on freight on exports,” FIEO president A Sakthivel said.