Merchandise exports likely to slip 2.3% in FY23: CARE Ratings

New Delhi, Dec 28 (KNN) In the current financial of 2022-23, India’s goods exports may drop by more than 2 per cent, said CARE Ratings on Tuesday referring to the slackening global growth and cooling demand.

It has also signalled a sharp drop in outbound shipments over the next quarter and merchandise exports is expected to grow just 1.5 per cent next year.

Although India’s merchandise exports have grown 11.1 per cent through the first eight months of the year to touch USD 295.3 billion, the rating agency cited recent months’ trend of moderating exports to reckon that the full-year figure would be 2.3 per cent lower than the record USD 422 billion achieved in 2021-22.

Economists at the agency have pointed out that India’s manufacturing sector, whose Gross Value Added to the economy contracted 4.3 per cent in the second quarter, will feel the pain of lower external demand as is evident in the 4 per cent drop in industrial output in October.

The experts have also highlighted on how major economies are likely to experience a sharp slowdown and global trade growth moderating.

“Sectors with high export intensity will specifically be hit hard by the ensuing global slowdown,” they said, identifying gems & jewellery, ceramic & glassware, leather & leather products, drugs & pharmaceuticals, engineering & electrical goods, and textiles as the most export-intensive sectors in manufacturing.  (KNN Bureau)